President Donald Trump on Tuesday announced his next target for tariffs: the pharmaceutical industry.
In remarks before the National Republican Congressional Committee, Trump said his administration will “be announcing very shortly a major tariff on pharmaceuticals” made abroad.
While pharmaceuticals were exempt from the president’s first round of tariffs, he has long touted his plan of bringing back drug manufacturing to the U.S. and appears to believe this action will help advance this goal.
“When they hear that, they will leave China, they will leave other places because they have to sell, most of their product is sold here,” Trump said. “And they’re going to be opening up their plants all over the place in our country.”
Trump noted that the advantage the U.S. has “over everybody is that we’re the big market.”
Currently, most drugs are produced at least in part outside the U.S. with China, India and Europe being major players in the supply chain.
While the president did not provide any further details on the specific levy, earlier this year he said he would impose a tariff of at least 25% on pharmaceuticals.
Experts have warned that tariffs on pharmaceuticals could lead to shortages of and higher prices for some drugs.
Even though his already imposed tariffs have caused economic uncertainty and turmoil, Trump has defended his trade policy, claiming it will actually benefit Republicans in the 2026 midterm elections.
“I really think we’re helped a lot by the tariffs situation that’s going on, which is a good situation, not a bad, it’s great, it’s going to be legendary, you watch. Legendary in a positive way, I have to say. It’s going to be legendary,” he said.
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Trump also bragged that countries across the world are lining up to cut deals with the United States to shield themselves from the effects of his tariffs.
“I’m telling you, these countries are calling us up, kissing my ass,” he said.
Trump’s tariffs targeting about 100 countries went into effect at midnight on Wednesday morning, including a whopping 104% tariff on Chinese imports. In response, Beijing said it will raise tariffs on U.S. goods to 84%.