Pharmaceutical Tariffs: Delays and Implications under Trump's Administration

The Trump administration's announcement about new tariffs on pharmaceutical imports remains delayed. Sources indicated the decision is weeks away, with phased-in tariffs intended. The investigation under Section 232 of the Trade Expansion Act examines potential national security threats posed by drug imports, while the tariffs could raise consumer costs.

The Trump administration's anticipated announcement on pharmaceutical tariffs seems to be delayed once again, a source of frustration for global pharma companies. Originally slated for mid-June, the results now seem weeks away as the President focuses on other pressing matters.

Commerce Secretary Howard Lutnick initially projected that the investigation into foreign pharmaceutical imports would assess potential national security threats by May and June. The tariffs, starting modestly, could peak at 250% as Trump seeks to rectify trade imbalances. However, both European government officials and insiders within the pharmaceutical industry anticipate further delays.

The investigation, conducted under Section 232 of the Trade Expansion Act, examines the implications of foreign drug reliance. Although pharma remains exempt from tariffs, a White House spokesperson emphasized the speculative nature of reporting. Amid bilateral trade deals, the administration prioritizes semiconductor investigations before addressing pharmaceuticals.

(With inputs from agencies.)