President Trump plans to hike the U.S. tariff on pharmaceutical imports to 150% within one and a half years. If that wasn’t high enough, he plans to boost the tariff even higher in order to encourage domestic pharmaceutical production.
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“We’ll be putting an initially small tariff on pharmaceuticals, but in one year — one and a half years, maximum — it’s going to go to 150%,” Trump said in a CNBC interview on Tuesday. “And then it’s going to go to 250%, because we want pharmaceuticals made in our country.”
Trump Calls for Lower Drug Prices
Last month, President Trump penned letters to 17 major drug companies —including Pfizer (PFE) and Eli Lilly (LLY)—demanding that they lower drug prices within 60 days. More specifically, he asked them to provide U.S. customers with most-favored-nation (MFN) drug prices. An MFN price refers to a price that is equivalent to or lower than the lowest price paid by another country.
Pharmaceutical companies have warned that Trump’s drug policies could harm the drug supply chain, reduce research and development capacity, and put patients at risk.
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