Trump Plans to Put Tariffs on Pharma Amid Trade Shift

US President Donald Trump announced plans to introduce new tariffs on imported pharmaceutical products, citing national economic and security interests. The move signals a shift toward greater protectionism in critical sectors, as the administration prepares to roll out additional duties within the coming week.

In an interview with CNBC on Tuesday, Trump stated that pharmaceuticals would face a phased tariff approach, starting with a “small” increase and escalating to 150% within 18 months. The rate could rise to 250% over time. The administration argues that the measure is aimed at reshoring pharmaceutical production to the United States.

"We want pharmaceuticals made in our country," Trump says.

In response to the pressure, several pharmaceutical companies have ramped up their investments in US manufacturing. AstraZeneca recently committed US$50 billion to expand its operations in the country, following similar moves by other major drugmakers, reports Reuters.

Meanwhile, Pfizer reported stronger-than-expected 2Q25 earnings and raised its forecast for the rest of the year, signaling continued confidence despite the looming policy shift. 

In addition to the pharmaceutical sector, the administration raised tariffs on Canadian goods linked to fentanyl production, moving from 25% to 35%, according to MBN. Trump cited a lack of cooperation from Canada in curbing illicit drug flows as justification. In contrast, Mexico received a 90-day reprieve from a proposed 30% tariff to allow for further trade negotiations.

Canadian Prime Minister Mark Carney criticized the tariff hike, calling it a threat to domestic industries and pledging to strengthen Canada's export strategies in response.