The Trump administration is reviewing the pharmaceutical sector for national security, with potential tariffs starting at 25% but capped at 15% under an EU agreement, despite Trump’s earlier mention of rates up to 200%.
US President Donald Trump announced plans to impose a “small tariff” on pharmaceutical imports on 5 August 2025, which will be gradually increased to 150% within 18 months and eventually to 250%.
The move is aimed at boosting domestic production of pharmaceutical products in the US.
“In one year, one and a half years maximum, it’s going to go to 150% and then it’s going to go to 250% because we want pharmaceuticals made in our country,” Trump said in an interview with CNBC.
Trump has not specified the initial tariff rate on pharmaceuticals, but previously mentioned that they could go as high as 200%. In February, he stated that tariffs on pharmaceuticals and semiconductor chips would start at 25% or higher and increase significantly within a year.
The US is conducting a national security review of the pharmaceutical sector, with the industry bracing for potential sector-specific tariffs.
While no timeline for the probe’s results has been announced, a framework agreement with the EU currently ensures zero tariffs on pharmaceuticals and semiconductors.
However, if the US raises tariffs after the investigation, they will be capped at 15%.
