Big Pharma Faces Potential 200% Tariff Shock

In a surprising move, President Donald Trump hinted at a massive 200% tariff on imported pharmaceuticals. This announcement came during a cabinet meeting, catching many off guard. The president mentioned that these tariffs could be implemented soon but gave a grace period of about a year and a half. However, he didn't provide specific details, leaving everyone in suspense. Commerce Secretary Howard Lutnick later spoke to CNBC, saying that the final decisions would be made by the end of the month. He mentioned that studies on pharmaceuticals and semiconductors were ongoing. But will Trump stick to his word this time? His history of changing course on tariffs leaves room for doubt. Pharmaceutical companies have been vocal about their concerns. They argue that such high tariffs could lead to higher drug prices, reduced investments in the U. S. , and even disruptions in the drug supply chain. This comes at a time when the industry is already struggling with Trump's drug pricing policies. The president believes that these tariffs will encourage drugmakers to move their manufacturing operations to the U. S. Companies like Eli Lilly and Johnson & Johnson have already started investing more domestically. But will this be enough to offset the potential negative impacts?