Overview

• President Trump announced plans to impose tariffs of up to 200% on imported pharmaceuticals, deferring enforcement for roughly a year to pressure foreign producers to shift more drugmaking to the United States.
• Commerce Secretary Howard Lutnick has indicated that specific tariff policies will be shaped by upcoming government studies on pharmaceuticals and semiconductors.
• Industry groups including PhRMA warn that steep import duties would drive up US drug prices, curb investment, and disrupt global supply chains.
• Domestic drugmakers operating on narrow profit margins say they would be compelled to raise consumer prices if tariffs are enacted.
• Indian generic manufacturers, which supply four in ten US prescriptions and derive 30–40% of their revenue from the American market, face significant risks that could accelerate their efforts to diversify exports.