Trump Plans Major Tariff on Pharmaceutical Imports, Expected to Increase Drug Costs by $51 Billion

The proposed U.S. tariffs on imported pharmaceuticals, particularly from Europe, could raise drug costs by up to $51 billion annually and increase prices for American consumers by as much as 12.9%. These tariffs threaten to disrupt global supply chains, potentially causing new drug shortages and raising production costs, especially for generic drugs and key ingredients used in domestic manufacturing. Industry experts and pharmaceutical companies warn that such measures would not significantly boost U.S. production capacity and may undermine the competitiveness of American-made medicines in international markets. Critics argue that targeting European drug imports would primarily hurt Americans by increasing federal healthcare spending and consumer costs, while failing to address broader national security concerns related to pharmaceutical imports from China. As Europe supplies a significant portion of U.S. pharmaceutical imports, even modest tariffs could result in substantial added costs for programs like Medicare and Medicaid, further straining the federal budget. Pharmaceutical companies and trade advocates are lobbying for exemptions, warning that these tariffs could backfire by raising domestic costs without securing supply chain independence.