Washington, D.C. – August 5, 2025, President Donald Trump has announced a new trade policy targeting pharmaceutical imports, starting with modest tariffs and potentially escalating to 150–250% over the next 18 months. The move is part of a broader strategy to encourage domestic drug manufacturing and reduce U.S. reliance on foreign suppliers.

Speaking from the White House, Trump described the initiative as a “national security and economic priority,” stressing that the United States should not depend on overseas markets, particularly China and India, for essential medications.
“We will bring back pharmaceutical manufacturing jobs, ensure a reliable drug supply, and end America’s dependence on countries that do not have our best interests in mind,” the president said.

Tariff Details and Timeline

According to a Reuters report on U.S. pharma tariffs, the plan begins with “small tariffs” in late 2025. These duties will gradually increase, potentially reaching triple-digit levels by 2027. The policy will apply to a wide range of finished drugs and active pharmaceutical ingredients (APIs).

Administration officials have indicated that exemptions may be available for drugs deemed critical to patient care where no viable U.S. alternative exists.

Potential Impact on Drug Prices and Supply

Industry analysts warn that the tariffs could have mixed effects:

Domestic Manufacturing Boost: Companies may expand or return production to the U.S., increasing local job creation.

Higher Consumer Prices: In the short term, imported drug costs are expected to rise, potentially leading to increased prices for patients and healthcare providers.

Supply Chain Disruptions: Given that the U.S. imports over 70% of its APIs from overseas, sudden shifts in sourcing could strain availability. (FDA data on U.S. drug imports)

Global Trade and Policy Reactions

International trade partners, particularly in Europe and Asia, are voicing concerns. Some have hinted at potential retaliatory tariffs on U.S. exports. Global pharmaceutical companies, many of which operate complex international supply chains, are urging the administration to reconsider.

The Pharmaceutical Research and Manufacturers of America (PhRMA) released a statement warning that while the goal of strengthening U.S. production is laudable, tariffs could “undermine patient access to affordable medications” without substantial investment in domestic capacity.

What’s Next

The tariff proposal is expected to face legal and political challenges. Congress will review related legislation in the fall, and healthcare advocacy groups are already mobilizing to push for drug price protections to accompany the new trade measures.