ORANGE COUNTY, Fla. – President Donald Trump announced on April 1 that there are plans to impose significant tariffs on pharmaceutical imports during a dinner for the National Republican Congressional Committee, signaling a major shift in U.S. drug policy.
By creating a move like this, it hopes to encourage U.S.-based manufacturing similar to that of motor vehicles and clothing.
“I think pharmaceuticals are going to be there because you know. We don’t make our own pharmaceuticals, drugs,” Trump said.
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“But we’re going to be announcing very shortly a major tariff on pharmaceuticals, and when you and when they hear that, they will leave China, they will leave other places because they have to sell most of their product is sold here and they’re going to be opening up their plants all over the place in our country.”
The U.S. has relied on foreign suppliers, such as India, for active pharmaceutical ingredients (APIs) and finished drugs for years, allowing the price to remain low.
Currently, China and India supply over 70% of APIs used in American drug manufacturing. Generic medications, which account for 90% of prescriptions in the U.S., will be the most at risk of a price increase due to international importing.
Hospitals, pharmacies, and patients who rely heavily on daily prescription medication may bear the brunt of these expenses.
“Results— In 2021–2022, 88.6% of older adults took prescription medication, 82.7% had prescription drug coverage, 3.6% did not get needed prescription medication due to cost, and 3.4% did not take medication as prescribed due to cost,” according to the U.S. Centers for Disease Control and Prevention.
The announcement comes in light of pre-existing concerns of shortages and essential medicines, including antibiotics and oncology treatments.
The announcement has already impacted financial markets. Shares of major pharmaceutical firms like Pfizer, Merck, and Eli Lilly fell between 3% and 6% in premarket trading following Trump’s remarks.
