Earlier this year, Donald Trump announced his intention to impose tariffs of up to 200% on pharmaceuticals brought into the United States. He announced these as forthcoming measures to be implemented “very soon.” During a July 8, 2025 Cabinet meeting at the White House, he made clear that it was his decision to impose tariffs at a “very high rate.” This historic step is likely to have a game-changing influence on the multinational pharmaceutical firms that do business in the U.S.
The proposed tariffs are in line with current conversations around drug manufacturing and prices in the United States. In April, then-President Trump ordered a Section 232 investigation into pharmaceutical goods. This example highlighted the priorities of his administration, particularly for increasing domestic manufacturing prowess. Their overarching aim of the tariffs is to incentivize drug companies to relocate their operations domestically. This change responds to the increased difficulty of domestic drug production that has dramatically increased in recent decades.
Almost all of the major pharmaceutical companies are increasing their investments in U.S. manufacturing. No wonder then, that major plan players like Eli Lilly, Johnson & Johnson, and AbbVie are joining the fray. This change comes after Trump’s repeated claims that the tariffs will bring about just this sort of movement. He remarked, “We’ll give them a certain period of time to get their act together,” signaling a grace period for companies to adjust before the levies are enforced.
Yet, these proposed tariffs have been hotly contested on multiple fronts. Industry leaders warn that imposing such high tariffs could lead to increased costs for consumers, deter foreign investments in the U.S., and potentially disrupt the existing drug supply chain. There’s worry that these disruptions could in the end threaten affected person entry to the medicines they want.
As Trump addressed the Cabinet, he reiterated his commitment to implementing these tariffs, stating, “They’re going to be tariffs at very high rate, like 200%.” The potential effects of these tariffs on drug prices and availability have raised alarms among healthcare advocates and industry experts alike.