Will drug prices soar under Trump’s tariff plan?
1/10
Trump’s Next Trade War Target
President Donald Trump has already slapped tariffs on autos, steel, aluminium, and a host of imports. Now, he has set his sights on pharmaceuticals — an industry that has long enjoyed duty-free entry into the U.S. (Source: AP)
2/10
From Zero to 200%?
Trump is threatening tariffs as high as 200% on imported drugs. Analysts call it “shock and awe” since pharmaceuticals could go from zero tariffs to a sudden and massive tax burden.
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Promise vs. Reality
Trump says his goal is to lower drug costs for Americans. But experts warn tariffs could backfire — raising prescription prices, pushing generics out of the market, and leaving consumers, especially the elderly and low-income households, to bear the brunt.
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4/10
Timing and Stockpiles
The White House may delay tariffs by up to 18 months. Drugmakers are already stockpiling inventory, which could soften the immediate blow. Analysts believe any price impact may not fully hit until 2027 or 2028.
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The U.S. Drug Deficit
America imports heavily: nearly $150 billion in pharmaceuticals last year. Many operations were offshored to China, India, Ireland, and Switzerland for lower costs and tax benefits, deepening U.S. reliance on foreign suppliers.
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National Security Concerns
COVID-19 revealed the risks of overdependence on foreign medicine supplies. Trump argues tariffs are essential for national security, invoking Section 232 of the Trade Expansion Act to justify protectionist measures.
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Factories Coming Home
Big pharma is responding. Roche plans to invest $50 billion, while Johnson & Johnson will put in $55 billion to expand U.S. operations. Trump says drugs made in America won’t face his tariffs, but building new plants is slow and costly.
8/10
Ingredients Still Abroad
Even U.S.-made drugs depend on imported components. Over 90% of antibiotics and antivirals contain ingredients sourced overseas. To fully escape tariffs, companies would need to rebuild entire supply chains domestically.
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Generic Drug Trouble
Generics, which make up 92% of U.S. prescriptions, face the greatest risk. Unlike big-brand drugmakers, they have thin margins and may exit the market if tariffs bite, risking shortages of essential medicines like chemotherapy drugs.
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The Bigger Question
Analysts agree tariffs alone won’t bring full pharmaceutical manufacturing back to the U.S. Without government financing and systemic reform, drug prices could soar, supply chains remain fragile, and patients may face higher risks.
(Disclaimer: This slideshow has been sourced from AP)
(Disclaimer: This slideshow has been sourced from AP)