Trump Targets Global Pharma: Tariffs Incoming to Boost US Drug Production

President’s executive order signals major shift in pharmaceutical trade as UK and global exporters brace for impact

US President Donald Trump has signed an executive order aimed at supercharging domestic pharmaceutical manufacturing, paired with a looming threat: import tariffs on foreign-made drugs, set to be announced within two weeks. The move forms part of Trump’s broader “America First” trade strategy and is expected to cause significant disruption to the global pharmaceutical supply chain.

Fast-Tracked Drug Manufacturing in the US

Under the executive order, the US Food and Drug Administration (FDA) is now required to accelerate the approval process for new pharmaceutical plants. The Environmental Protection Agency (EPA) has also been instructed to expedite construction permits for manufacturing facilities. These measures are designed to reduce the country’s reliance on overseas drug production, which Trump has described as a “national security threat.”

“Too much of our medicine comes from foreign countries,” Trump said. “We are bringing it home.”

Tariffs on Foreign Pharmaceuticals in Two Weeks

Trump’s most headline-grabbing promise, however, was his declaration that new tariffs on imported pharmaceutical products would be unveiled within the next fortnight. Earlier investigations by the US government have explored imposing trade duties on various medical imports, but this marks the first time the president has committed to a specific timeline.

The US imports more than $200 billion worth of prescription drugs each year. Tariffs on this scale would likely raise costs for both consumers and healthcare providers—and significantly disrupt international producers.

UK, European and Asian Firms on Alert

Pharmaceutical exporters in Europe, the UK, India, and China could be among the hardest hit. British drugmakers that rely heavily on US sales may face new barriers, while global giants like Roche, Novartis, and India-based firms are already seeing market reactions.

In response to Trump's protectionist stance, several major firms have recently pledged increased investment in US-based production facilities. Companies including Eli Lilly, Johnson & Johnson, and Pfizer are reportedly shifting elements of their manufacturing operations to American soil.

Despite these developments, shares in several pharma firms have dipped. Eli Lilly and Pfizer both saw minor losses in early trading, while Indian pharmaceutical stocks with exposure to the US also retreated on the news.

A New Front in Trump's Trade War

This announcement comes just one day after Trump threatened to impose 100% tariffs on non-US films, sending shockwaves through the global entertainment sector. Now, with the pharmaceutical industry in his sights, it’s clear the president is doubling down on his pledge to revive domestic manufacturing through aggressive trade policy.

Conclusion: Global Pharma at a Crossroads

Trump’s latest move could reshape the global pharmaceutical industry. While the executive order promises to boost American drug production and reduce dependency on foreign suppliers, it also risks upending long-standing international trade relationships.

For the UK and other major exporters, this is a wake-up call. As the US shifts its priorities inward, international pharmaceutical firms must quickly adapt or risk being left out of one of the world’s most lucrative markets.

Sources: (Investing.com, Reuters)