Trump To Announce ‘Major’ Pharma Tariffs Soon: EU Drugmakers Sound Alarm, India On Edge

As the dust settles on U.S. President Donald Trump's recent announcement of "reciprocal" tariffs, the administration is now shifting its focus toward the pharmaceutical sector. Trump has signaled plans to impose major tariffs on pharmaceutical imports, a move that could significantly disrupt the global pharma supply chain.

"Pharma is going to start coming in, I think, at a level that we haven't really seen before. We are looking at pharma right now. Pharmaceuticals. It's a separate category. We'll be announcing that sometime in the near future. It's under review right now," Trump said earlier to reporters aboard Air Force One.

Speaking at a recent fundraising event hosted by the National Republican Congressional Committee, Trump reiterated his commitment to introducing tariffs on imported drugs. "We are going to be announcing very shortly a major tariff on pharmaceuticals."

He added, "When they hear that they will leave China, they will leave other places because . . . most of their product is sold here.", emphasizing that the goal is to incentivize pharmaceutical companies to relocate operations to the United States.

Expected Tariff Measures

In a prior interaction with reporters in February, Trump hinted that these tariffs could begin at 25 percent and potentially increase over time. The administration is likely to consider invoking Section 232 powers, which allow the government to impose trade restrictions on grounds of national security, Bloomberg noted.

European Industry On Edge

The announcement has raised alarm bells among European pharmaceutical leaders. In a letter to European Commission President Ursula von der Leyen, the European Federation of Pharmaceutical Industries and Associations (EFPIA) warned that around €16.5 billion ($18 billion) in biopharma investment within EU-27 nations could be at risk within just three months if the U.S. follows through with the tariffs, as per a FiercePharma report.

Looking ahead, EFPIA estimates that between 2025 and 2029, up to €103.2 billion ($113 billion) in planned capital and R&D investments could shift away from the EU. This would represent a significant portion of the €164.8 billion total industry spending projected for the region over that period, the report added.

EFPIA, which includes major players like Bayer, Novartis, and Novo Nordisk, has urged the EU to take "rapid and radical action" to prevent what it described as a "risk of exodus" to the U.S. The organization also called for urgent reforms to the EU's regulatory framework and intellectual property protections to make Europe more attractive for innovation-driven pharma investment.

Potential Impact on India

India, a major player in the global pharmaceutical supply chain, is likely to feel the ripple effects of the proposed U.S. tariffs. In 2024, India's pharmaceutical exports were valued at $12.72 billion, making it one of the largest industrial export sectors serving the U.S. market. The introduction of tariffs could disrupt market access, pricing, and supply logistics for Indian drugmakers, potentially forcing them to rethink export strategies or seek alternative international markets.

If the Trump administration proceeds with imposing tariffs on pharmaceutical imports from India, the consequences could be felt on both sides. The U.S. relies heavily on India for generic drugs, which account for around 6 per cent of its total pharmaceutical imports by value. Any trade barrier could not only raise costs for American consumers but also impact the availability of essential medications.