U.S. President Donald Trump has imposed tariffs on many imported goods before, and now he is planning to put heavy tariffs on essential medicines. According to an AP report, the Trump administration is considering tariffs as high as 200% on some medicines.
Trump wants to apply similar tariffs on medicines as those previously applied to goods like autos and steel. Experts warn that this could break decades-old policies, raise medicine prices in the U.S., cause supply problems, and even lead to shortages.
Trump cites Section 232 of the Trade Expansion Act of 1962, saying that shortages and stockpiling of medicines during the COVID-19 pandemic show the need to boost domestic production.
Under a recent trade deal between the U.S. and Europe, a 15% tariff is applied to European goods, including medicines. The administration has also threatened higher tariffs on medicines imported from other countries.
Most medicines sold in the U.S. are generic. About 92% of medicines sold in retail and mail-order pharmacies are generic. These companies operate with low profit margins and may not be able to pay high tariffs. Analysts warn that some may leave the U.S. market instead of paying the tariffs.
