President Donald Trump said the U.S. could impose tariffs on pharmaceuticals as high as 250%, the steepest rate proposed to date, as part of a push to bring more drug manufacturing to the U.S., CNBC reported Aug. 5.
In an interview with CNBC’s “Squawk Box,” President Trump said he would start with a “small tariff” but within a year to 18 months plans to increase the rate first to 150% and then to 250%. Previously, in a July 8 Cabinet meeting, he threatened to impose tariffs as high as 200% on pharmaceuticals imported into the U.S.
This comes after a Section 232 investigation was launched in April; it allows the secretary of commerce to examine whether pharmaceutical imports threaten national security. President Trump’s comments also follow an executive order he signed July 31 that sets new tariff rates between 10% and 41% on imports from more than 60 countries, effective Aug. 8.
He also sent letters to 17 pharmaceutical companies, calling for them to lower drug prices by Sept. 29, including offering their full lines of medicines to Medicaid patients. In the last six months, drugmakers including Eli Lilly and Johnson & Johnson have announced new investments in U.S. manufacturing, CNBC reported.
