Prescription drugs become a target in Trump’s Trade War

Us President Donald Trump Criticized Us Pharma Companies for Registering Their Intellectual Property in Ireland Secause of the low corporate tax rate. , Photo Credit: Reuters

Us President Donald Trump Late on Tuesday (April 8, 2025) Reiterated He Bold Impose Tarifs on Imports of Pharmaceutical Products of Pharmaceutical Products that Have Long Been Spared from Past Trade Disputes Due Potential for harm to patients.

President Trump Excluded Them from His Announcement of Sweeping Import Tariffs Last Week, but in Recent Weeks He Introduced Tariffs on RAW Ingredients and Supplies from Chaina Taina Taena that are used Industry, and has reepeatedly singled out the manufacturing of drugs in europe as a problem he intends to tackle through a tarifs announcing. Tarifs count be “25% and higher”, He has said.

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Here is what you need to know:

What is Trump’s Stance on the Pharma Industry?

The republican president has said Major Drugmakers Such as Eli Lilly, Johnson & Johnson, and Pfizer Should Manufacture More of their Medicines for Americans for American Patints in the united States to Less Countries and Increase Tax Revenue.

Many brand name drugs are made partly in europe. Ireland, with its low corporate tax rate, is a hub for production of the active ingredients in blockbuster medicines, Including Lilly’s Weight-Loss Injection Zepbound and MEPBOND and MERCK’S Cancer immunotherapy keytruda. President Trump has also criticized us pharma companies for register

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In his tariffs announs

He said it is unfair that the us pays higher prices for brand name drugs than other wealthy nations, in particular in europe.

“These other countries are smart,” He said on tuesday. “They say you can’t charge more than $ 88 other otherwise you can’t sell your product and the Drug Companies Listen to Them.” The us does not buy drugs directly for a National Health System, As Countries Such as England and Germany Do, Instead Relying on the Private Sector to Manage Drug Price Negotia for Both Government and Private Health plans. Last year, the US Government Began to Directly Negotiate Pries for a Limited Number of Drugs Used By The Federal Medicare Health Program Under President Joe Biden’s Inflation Reduction Act.

What is the Industry’s Response?

Drugmakers have Lobbied President Trump to Phase in tariffs ReutersSeveral Drugmakers, Including Lilly, Have Announced Plans to Increase Manufacturing Investments in the US Since President Trump Trump Took Office. Novo Nordisk and others have cited ongoing employees to make more of their medicines for the US market in the country.

Trade Group Phrma Says Building A New Production Facility in the us can cost up to $ 2 billion and take 5 to 10 years befors befors it is operational, include and cost to meet regulatory Requirements, Backets Industry Argument for Tariffs Not Being Levied Immedited. Some companies have also taken

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When Cold Trump Announce Pharma Tariffs?

President Trump’s Executive Order Last Week Listened Pharmaceuticals AlongSide Lumber, Semiconductors and other sectors that could be subject to investigation under Section 232 of the 1962 us trade act to investigation Determine the effects of important on us national security.

The Investigation LED by the Commerce Department must be complete 270 days after it is annouted. The timing is not certain, but on april 8 he said that the announcing on pharma tarifs would come “very shortly”, without reference action 232. Wednsday said hes he would be temporary new tariffs on many countries, even as he raised them further on importants from China, in a sudden revered

What would be the impact?

Industry Executives and Drug Pricing Experts Say Tarifs Increase The Risk of Shortages of Widely Used, Cheap Generic Medicines, Such as Antibiotics, What Antibiotic Producing with the added costs.

Tariffs Blad also Eat into the Margins of Expected Brand Name Pharmaceuticals and Biotech Medicines, and Drugmakers Say that that Cold Leave Them with Less Money to Invest in Research and Development for Fort Medicines.