President Donald Trump has temporarily dropped tariff rates on imports for most U.S. trading partners to 10% for 90 days to allow for trade negotiations, according to an April 9 Truth Social post.
In addition, President Trump said he is raising tariffs on imports from China to 125% “effective immediately,” based on the “lack of respect that China has shown to the World’s Markets.” This comes after China said it would raise tariffs on U.S. imports to 84% April 8.
On April 2, the U.S. announced a global 10% baseline tariff on all imports, which took effect April 5. Dozens of countries were also set to face higher reciprocal rates ranging from 11% to 50% beginning April 9, though President Trump said those steeper rates were on pause for 90 days.
Renton, Wash.-based Providence Health previously estimated that the tariffs could increase costs by $10 million to $25 million annually. The estimate was shared in response to the initial announcement of reciprocal rates. Moreover, a January survey of 200 healthcare industry experts found that 82% expect tariff-related import expenses could drive up hospital and health system costs by 15% within the next six months.
President Trump also said April 8 that pharmaceutical imports will soon face “major tariffs,” after drug imports evaded the first round of tariffs.
“We’re going to be announcing very shortly a major tariff on pharmaceuticals,” he said at a dinner of the National Republican Congressional Committee. “And when they hear that, they will leave China. They will leave other places because they have to sell — most of their product is sold here and they’re going to be opening up their plants all over the place.”
Two more federal health updates:
Judge blocks NIH cuts: On April 4, U.S. District Judge Angel Kelley permanently blocked the Trump administration’s proposal to cap the National Institutes of Health reimbursements at 15% for research overhead costs to academic medical centers and universities. The ruling comes after Ms. Kelley issued a temporary restraining order in February to pause the proposed policy and then extended the order twice until the April 4 final ruling. The Trump administration requested an April 4 verdict to be entered into court so that it can appeal.
Attorneys general from 16 states also filed a federal lawsuit April 4 that challenged the Trump administration’s termination of NIH research grants. The lawsuit argued that the cuts jeopardize public health and disrupt studies on maladies such as Alzheimer’s disease and substance abuse.
RFK Jr. suggests reinstatement of some health programs, job cuts: HHS Secretary Robert F. Kennedy Jr. said during an April 9 interview with CBS News that he was “not familiar” with the $11 billion cuts to local and state programs that oversee mental health, childhood vaccination, addiction and infectious disease. The cuts were put on temporary pause April 3 by a Rhode Island federal judge. Instead, Mr. Kennedy said the cuts were mostly diversity, equity and inclusion eliminations, which were ordered by President Trump.
Mr. Kennedy also said HHS would look into the elimination of a $750,000 University of Michigan grant that targeted adolescent diabetes. “[There’s] a number of studies that were cut that came to our attention and that did not deserve to be cut, and we reinstated them,” he said. “Our purpose is not to reduce any level of scientific research that’s important.”
The news comes after Mr. Kennedy acknowledged April 3 that around 20% of the 10,000 dismissed HHS employees may be reinstated. The dismissals included 3,500 FDA employees, 2,400 CDC employees, 1,200 NIH employees and 300 CMS employees.
