Trump Administration Targets Pharmaceuticals and Semiconductors With Potential Tariffs Under National Security Probe
The Trump administration has launched national security investigations into pharmaceutical and semiconductor imports, signaling potential new tariffs under Section 232 of the Trade Expansion Act of 1962.
- Public comment on the matter is open for 21 days starting April 16, with the entire investigation expected to be completed within 270 days.
- Tariffs on pharmaceuticals and semiconductors would be separate from the 10% general import duties the U.S. began collecting on April 5.
- Trump plans to announce semiconductor-specific tariffs within a week, suggesting some flexibility for certain companies in the sector.
- Pharmaceutical tariffs will cover finished drugs, ingredients, and derivative products, raising concern across the healthcare sector about potential supply disruptions.
- Generic drug manufacturers, which operate on thin margins, warn that new tariffs could worsen existing medicine shortages and reduce patient access.
- Brand-name drugmakers may absorb some tariff costs, but industry experts anticipate that these expenses will ultimately be passed on to consumers.
- Trump argues for increased domestic drug manufacturing to reduce dependence on foreign supply chains, especially in light of national security concerns.
- The industry is lobbying for phased-in tariffs, citing the time and capital required to shift manufacturing to the U.S. — a process that could take years.
- Indian pharmaceutical companies, which supply nearly half of U.S. generics, warn that large tariffs could deter investment and worsen healthcare access and costs.
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