US President Donald Trump will speak to a member of the media at Lehigh Valley International Airport in Allentown, Pennsylvania, on August 3, 2025.
Kencedeno | Reuters
President Donald Trump told CNBC’s “Scoobox” on Tuesday. He said tariffs on drugs imported into the US could ultimately reach 250%.
He initially stated that he would impose a “small tariff” on the drug, but then at the “maximum” of a year to a half and a half, he would raise that rate to 150%, 250%.
As the president repeatedly threatened and changed courses on tariff proposals, there is no guarantee that he will ultimately set a tariff on drugs at a 250% rate. In early July, Trump threatened 200% tariffs on drugs.
In April, the Trump administration began an investigation into so-called Section 232 on drugs. This is a legal authority that allows the Secretary of Commerce to investigate the impact of imports on national security.
The tariff is the president’s bid to encourage pharmaceutical companies to move manufacturing operations to the United States when domestic drug production has dramatically reduced over the past decades. I’ve loved businesses for the past six months Eli Lily and Johnson & Johnson We have announced fresh US investments to build goodwill with the president.
“We want medicines made in our country,” Trump told CNBC.
Planned taxation will hit the pharmaceutical industry. This warns that tariffs could raise costs, block US investment, disrupt the drug supply chain, and put patients at risk. Drugmakers are already navigating the fallout from Trump’s drug pricing policy. They claim it threatens both their final revenues and their ability to invest in research and development.
This includes Trump’s executive order in May to revive the “most favorable country” policy, a controversial plan aimed at reducing drug costs by linking the prices of some US drugs to significantly lower overseas markets.
On Tuesday, Trump told CNBC that he “came” the policies of “most preferred countries” and “has a huge impact on medical prices.” However, Trump has not officially implemented any changes from the executive order.
Last week, Trump wrote to 17 drugmakers, calling for them to commit to steps to lower US drug prices by September 29th.
Some pharmaceutical companies say they are reviewing the letter.
