Overview

• On August 5, President Trump told CNBC he will impose an initial modest tariff on imported pharmaceuticals within days and then boost duties to 150% in one year and to 250% within 18 months.
• The announcement follows a Section 232 national security review launched in April and a May executive order that ties U.S. drug prices to the lowest global rates under a Most-Favored-Nation framework.
• Administration officials say the escalating tariffs aim to compel pharmaceutical companies to expand or relocate production on U.S. soil.
• Major drugmakers are stockpiling inventories, lobbying for exemptions and accelerating plans for new domestic manufacturing facilities as they brace for sector-specific levies.
• Critics including Senator Raphael Warnock warn the proposed duties could drive up prescription costs for American patients and trigger legal challenges over executive tariff authority.