Drugmakers appeared to dodge President Donald Trump’s across-the-board 10% tariff on most imported goods and higher charges for some nations.
In announcing his broad tariff plan, Trump said U.S. drugmakers will come “roaring back” with new domestic manufacturing or they will “have a big tax to pay” on imports.
But the White House released an executive order Wednesday following Trump’s speech that said pharmaceuticals would be exempt from reciprocal tariffs. Other products such as copper, semiconductors, lumber, certain critical minerals, energy sources and products were also exempt, the order said.
The pharmaceutical industry isn’t celebrating just yet. Trump has mused on multiple occasions 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 India.
In one exchange with reporters in February, the president said tariffs on imported drugs would likely start around 25% and could climb higher.
The White House press office did not immediately respond to questions about the pharmaceutical industry’s exemption and whether there are plans to impose a drug industry-specific tariff. The drug industry trade group PhRMA said it shared Trump’s goal of revitalizing American manufacturing.
“As the president pointed out (Wednesday), our members continue to expand their U.S. footprint, driven in part by tax policies President Trump put in place during his first term,” said Alex Schriver, PhRMA’s senior vice president of public affairs. “We look forward to working with the administration on ways to ensure America remains the most attractive place in the world to discover and manufacture new treatments and cures.”
