US May Impose High Pharma Tariffs After One-Year Grace Period: Trump

According to Trump, the administration’s approach is designed to give companies a reasonable transition period before facing steep duties, which could go as high as 200 per cent within a year

Trump’s comments follow statements made last week by Commerce Secretary Howard Lutnick

Source : ANI

US President Donald Trump has signaled that new tariffs on pharmaceutical imports could take effect by the end of this month. Speaking to reporters after a public event in Pittsburgh, Trump said the rollout of these duties would be gradual, giving drugmakers time to shift manufacturing operations to the United States.

“Probably at the end of the month and we are going to start off with a low tariff and give pharmaceutical companies a year or so to build, and then we're going to make it a very high tariff,” he said, according to an IANs report.

According to Trump, the administration’s approach is designed to give companies a reasonable transition period before facing steep duties, which could go as high as 200 per cent within a year.

Semiconductors In Focus

Trump noted that a similar timeline would apply to tariffs on semiconductors, although he added that implementing those tariffs would be less complex. The timeline for semiconductors was “similar,” and it was “less complicated” to impose levies on chips, he said, without elaborating further.

This marks another step in Trump’s broader strategy to reduce reliance on foreign-made technology and pharmaceuticals, both of which he has repeatedly linked to US national security risks.

Investigations Nearing Conclusion

Trump’s comments follow statements made last week by Commerce Secretary Howard Lutnick, who confirmed that national security reviews of pharmaceutical and semiconductor imports are expected to conclude by the end of July. These investigations were launched in April under Section 232 of the Trade Expansion Act of 1962 — a legal provision that allows the president to restrict imports that threaten national security.

Copper Tariffs Also On The Horizon

In addition to pharmaceuticals and semiconductors, Trump has also indicated plans to levy a 50 per cent tariff on copper in the coming weeks, as part of a broader effort to boost domestic manufacturing.

The administration’s use of Section 232 has drawn both support and criticism, with advocates pointing to the need for industrial self-sufficiency, while opponents warn of potential trade retaliation and increased consumer costs.