US President Donald Trump revealed that his government may start charging tariffs on drugs imported into the country by the end of the month. He further stated that the implementation of duties on semiconductors would also follow the same timeline.
Trump, as indicated in a report by Yonhap news agency, stated that the tariffs on drugs would be phased in to allow companies to set up manufacturing units inside the United States.
Most likely at the end of the month and we're going to begin with a low tariff and provide pharma companies with a year or so to construct, and then we're going to make it a very high tariff," he said in a press conference after an event in Pittsburgh.
He continued that the timing of tariffs on semiconductors would coincide with pharmaceuticals, though he explained the procedure of placing duties on chips as "less complicated." Additional details weren't provided.
Just last week, Commerce Secretary Howard Lutnick confirmed that the administration is on track to conclude its national security investigations into imports of pharmaceuticals and semiconductors by month’s end. This move could signal that official announcements regarding new tariffs are imminent.
These investigations come in response to queries initiated in April under Section 232 of the Trade Expansion Act of 1962—a law that allows the president to limit imports that are found to be a threat to US national security.
Earlier this month, Trump announced plans at a Cabinet meeting to put a 50 percent tariff on copper. He also repeated that pharmaceutical tariffs could ultimately go as high as 200 percent, after US-based manufacturing has had a year to build up.
Trump has previously made the point that imported drugs pose a threat to national security. The decision by his administration to investigate pharmaceutical imports under Section 232 reflects that anxiety.
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