US Drug Prices to Skyrocket: Trump's 200% Tariff Plan Raises Shortage Concerns

United States President Donald Trump has recently proposed steep tariffs on imported medicines, with officials from his administration publicly floating levies as high as 200% on certain drugs, the Associated Press said in a report.

As per the report, Trump is aiming to extend tariffs, already applied to goods such as autos and steel, to the pharmaceutical sector. This would mark a sharp break from decades during which many medicines have entered the US duty free.

This policy could push up the prices and interrupt supply chains, according to experts.

What Is Trump Proposing With 200% Pharma Tariffs?

While officials have invoked national security under Section 232 of the Trade Expansion Act of 1962 to justify the move, the argument is that domestic production needs to increase after the shortages and stockpiling seen during the COVID-19 pandemic.

A 15% tariff has already been imposed on certain European goods like pharmaceuticals, and the administration is threatening far higher duties on other imports, due to a recent US-Europe trade outline.

Timing Of Implementation

According to the White House, delays of a year to a year and a half will be given to the firms to adjust.

Several companies have already increased imports and built inventories.

According to experts, most drugmakers have already increased drug product imports and may carry 6-18 months of inventory in the US.

While disruption could be modest in the short term, in the long run the pressure on costs as well as supplies will grow.

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