‘Something Very Big…’ Trump To Announce ‘Major’ Tariff on Pharma Imports

US President Donald Trump has announced that his administration is preparing to impose a significant tariff on pharmaceutical imports, a move aimed at reducing American dependence on foreign drug supplies and revitalising domestic production.

Speaking at an event hosted by the National Republican Congressional Committee, Trump said, “We’re going to be doing something very big on drug imports — a major tariff is coming.” The announcement signals a new phase in the President’s ongoing campaign to bring manufacturing back to the United States.

While the President did not provide details regarding the scope or timeline of the proposed tariffs, he made it clear that the goal is to encourage pharmaceutical companies to relocate their production facilities to the US. “We want these companies to make their products here, in America, not in China or elsewhere,” Trump stated.

Trump further defended his administration’s broader trade policies, claiming that tariffs imposed on foreign imports are generating up to $2 billion a day. “We’ve had talks with many, many countries who want to make deals. Our problem is, we can’t see that many that fast. But we don’t have to because the tariffs are on, and money is pouring in at a level we’ve never seen,” he said.

The announcement comes amid heightened trade tensions globally, with the US recently imposing steep tariffs on Chinese goods and considering similar actions against imports from other countries. Trump indicated that over 60 nations are affected by existing trade restrictions, and exemptions have been minimal despite international pressure.

Market reaction was swift and volatile. The S&P 500 initially jumped 4.1% early on Tuesday, only to reverse course and fall as much as 3% before trimming the loss to 1.6%. The Dow Jones Industrial Average closed down by 320 points, while the Nasdaq composite dropped 2.1%.

Global stock markets echoed this volatility, rallying in the early hours before turning mixed, as investors grappled with the potential implications of a prolonged trade war on the pharmaceutical and broader manufacturing sectors.

Analysts have raised concerns over the potential impact on drug prices and international supply chains. “Tariffs on pharmaceuticals could lead to supply disruptions or higher costs for consumers unless the domestic manufacturing base scales up rapidly,” said Andrew Keller, a senior economist at Global Markets Advisory.

Meanwhile, Trump maintained that business leaders are already responding positively to the tariff threat. “Companies are now coming back to the US because they want to avoid the penalties. That’s exactly what we want — American jobs, American products, and American innovation,” he said.