Trump’s Possible 200% Pharma Tariff: What You Need to Know

US President Donald Trump is reportedly considering slapping a massive 200% tariff on imported medicines, a move that could upend decades of duty-free drug trade in America. While the US recently imposed a 15% tariff on certain European pharmaceuticals in a trade deal, a jump to 200% would be unprecedented.

Such a steep hike would clash with Trump’s pledge to make medicines cheaper. Instead, it could disrupt supply chains, drive out lower-cost imports, and even trigger shortages, the Associated Press reported.

How Consumers Could Feel the Heat

Healthcare economist Diederik Stadig of ING told that, “a tariff could hurt the consumers the most as they would feel the inflationary effect. It could be a direct effect for those who are paying directly for prescriptions and indirectly could increase insurance premiums. Even a 25 per cent increase in drugs could increase pharmaceutical prices by 10-14 per cent as the stockpile decreases”.

Pressure on Drugmakers

Trump has also been pressing drugmakers to cut prices in the US. According to the report, he even sent letters to several companies, urging them to adopt “most-favoured nation” pricing. He suggested tariffs could be delayed by 12 to 18 months, giving firms time to stockpile medicines and shift some production to the US.

Stockpiling Could Delay the Pain

Analyst David Windley of Jeffries noted that if tariffs only begin in late 2026, their impact might not be felt until 2027 or 2028, thanks to advance stockpiling.

Why 200% May Be Unlikely

Many experts doubt the White House will stick to the proposed 200% tariff, expecting a lower figure instead.

While US-made drugs would be exempt, the prospect has already pushed several companies to ramp up investments in domestic facilities. But building pharmaceutical plants in America is costly and time-consuming, often taking years. And even then, drugmakers may not be shielded from tariffs if imported ingredients are targeted.