Trump plans drug tariffs of up to 250%
President Donald Trump threatened to levy tariffs of up to 250% on pharmaceuticals imported into the United States.
The president told CNBC on Aug. 5 that he plans to announce new tariffs "within the next week or so" on imports of pharmaceutical and semiconductor imports.
He said he plans to launch a smaller tariff on drug imports before increasing the duties over 12 to 18 months to a maximum amount.
Trump would start with an "initially small tariff on pharmaceuticals," he said. "But in one year, one-and-a-half years maximum, it's going to go to 150%, and then it's going to go to 250%, because we want pharmaceuticals made in our country."
He said other nations "make a fortune" on pharmaceuticals, citing drugs imported from China and Ireland.
Trump has said several times in recent months that there could be trade actions for the pharmaceutical industry, which has globalized since the 1990s with a drug supply chain that stretches from Europe to China and India.
In July, Trump said his administration planned pharmaceutical-specific tariffs of up to 200%, though drug companies would have time to establish U.S.-based drug manufacturing.
In April, Trump said he planned to impose tariffs on pharmaceuticals made overseas, a move he said would prompt drug companies to move their operations to the U.S.
On July 31, Trump sent letters to 17 drug companies urging them to lower U.S. drug prices by Sept. 29 to "most favored nation" amounts paid by other nations.
In the letters, Trump urged drug companies to adopt such pricing on drug for Medicaid, the federal-state health insurance program for low-income residents.
He also requested drug companies lower U.S. prices to the same levels charged in Europe and elsewhere for newly-launched drugs for people on Medicare, Medicaid and private insurance plans.
Trump also urged drug companies to lower pharmaceutical prices for U.S. consumers and businesses that directly purchase from drug companies.
"Make no mistake: a collaborative effort towards achieving global pricing parity would be the most effective path for companies, the government and American patients," Trump said in the letters. "But if you refuse to step up, we will deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices."