Trump's Tariff Move: A Drug Industry Wake-Up Call?

President Donald Trump has unveiled plans to introduce significant tariffs on imported pharmaceuticals, potentially reaching 200%, while also targeting semiconductor imports. Speaking at a White House Cabinet meeting, Trump announced a year-long grace period for drugmakers to adjust prior to the implementation of these tariffs.

This move stems from a national security investigation launched in April, targeting the pharmaceutical industry's reliance on foreign production. The Commerce Department's report is pending, while Trump emphasizes the need to bolster U.S. drug manufacturing capacity to reduce dependency on foreign countries.

Pharmaceutical companies caution that such tariffs may result in drug shortages and hinder patient access, lobbying for a phased approach. Industry representatives argue that funds used for tariffs detract from American manufacturing and future treatment development investments.

(With inputs from agencies.)