U.S. to Impose 200% Tariff on Pharmaceuticals After One-Year Grace Period

In a significant move that could reshape the pharmaceutical industry, U.S. President Donald Trump has announced plans to impose a 200% tariff on imported pharmaceuticals. This measure, however, will not take immediate effect. Companies are being given a grace period of about a year to adjust their operations.

Other Tariff Announcements

While the pharmaceutical sector braces for impact, the semiconductor industry might breathe a sigh of relief. Trump hinted that semiconductors are unlikely to face tariffs, though a final decision is pending. On the other hand, a 50% tariff on copper is set to be implemented starting August 1.

Behind the Decision

The tariffs are being considered under Section 232 of the Trade Expansion Act, which allows the president to impose restrictions on imports that threaten national security. Commerce Secretary Howard Rutnick confirmed that the investigation into copper imports is complete, with an announcement expected shortly. Investigations into pharmaceuticals and semiconductors are slated to conclude by the end of the month.

Global Implications

This announcement is part of a broader strategy, with Trump sending tariff letters to 14 trading partners and planning to reach out to 15-20 more in the coming days. The global trade landscape is poised for significant changes as these measures take effect.