Overview

• At a July 8 Cabinet meeting, President Trump warned that imported pharmaceuticals and semiconductor chips could face tariffs of up to 200 percent if production isn’t shifted to the U.S. within 12 to 18 months.
• Commerce Secretary Howard Lutnick said studies into Section 232 tariffs on both industries will be completed by the end of July ahead of the final policy decision.
• The threat builds on an April national security investigation into foreign drug reliance and a May executive order imposing Most-Favored-Nations price caps on medicines.
• Pharmaceutical companies warn that such steep duties could provoke global supply disruptions, increase production costs and limit patient access to critical medications.
• A Forbes analysis suggests a 200 percent tariff could hit roughly $200 billion in drug imports and drive significant price increases for American consumers.