President Donald Trump announced a sweeping set of new tariffs April 2, marking one of the most significant shifts in U.S. trade policy in decades.
Beginning April 5, the U.S. will implement a 10% baseline tariff on all countries. Reciprocal tariffs on imports from dozens of key trading partners will also take effect April 9.
Here are five things to know:
- Chinese imports will be hit with a 34% tariff, India will be subject to a 26% tariff and the European Union will face a 25% tariff. These figures include the 10% base tariff. The reciprocal tariffs reflect roughly half the rate of duties the nations charge on U.S. goods. Pharmaceuticals are not subject to the reciprocal tariffs, though White House officials suggested additional tariffs could be applied to lumber, copper, semiconductors, pharmaceuticals and critical minerals in the coming months.
- President Trump touted the new levies as a way to reduce dependence on foreign goods, encourage more manufacturing in the U.S. and protect national security.
“The United States can no longer produce enough antibiotics to treat our sick,” he said. “We have a tremendous problem. We have to go to foreign countries to treat our sick. If anything ever happened, from a war standpoint, we wouldn’t be able to do it. We import virtually all of our computers, phones, televisions and electronics. We used to dominate the field, and now we import it all from different countries.”
- India provides nearly half of the generic medications used in the U.S., saving consumers $219 billion in 2022. Mark Cuban, the founder of Cost Plus Drugs, said in a recent podcast interview that if Indian pharmaceuticals are subject to the tariffs, the company’s drug prices will rise as a result. His company, which operates on a 15% markup, would have to pass those costs on to consumers, he said.
“If you only have a 15% markup and there’s a 25% tariff, we’d have to lose money on every single medication,” he said in the interview.
- Canada and Mexico were not among the listed countries facing additional tariffs, according to The New York Times. Tariffs that previously took effect in March include 25% duties on all steel and aluminum imports — key materials used in medical devices and surgical instruments — and 25% tariffs on certain goods from Mexico and Canada. Temporary tariff exemptions that applied to half of imports from Mexico and 38% from Canada were set to expire April 2.
- In a statement shared with Becker’s, Soumi Saha, PharmD, senior vice president of government affairs at Premier, said “targeted and thoughtful tariffs on healthcare products could offer a chance to bolster supply resilience and ensure access to critical medical supplies.”
“But they cannot live in a vacuum, lest they become just another cost without real impact. Premier believes that tariffs need to be put to work, funding innovation that ensures long-term stability and a stronger, more resilient U.S. supply chain,” the group purchasing organization said.
“Premier champions a comprehensive strategy, including leveraging tariff funds to expand domestic and nearshore manufacturing of essential medical products, incentivizing healthcare providers and the U.S. government to buy American, and prioritizing FDA approvals for domestically produced medical goods.”
