President Donald Trump said on Tuesday that the U.S. will soon announce a “major” tariff on pharmaceutical imports, adding that this will incentivize drug companies to move their operations to the U.S.
“We are going to be announcing very shortly a major tariff on pharmaceuticals. Once we do that, they’re going to come rushing back into our country because we’re the big market. The advantage we have over everybody is that we’re the big market,” he said at an event at the National Republican Congressional Committee.
“When they hear that, they will leave China, they will leave other places, because they have to sell — most of their product is sold here,” he added, referring to drug companies. Trump did not give any further details on what the tariff increase would be.
European pharmaceutical companies warn of industry shift
In response, European pharmaceutical companies warned the European Commission president at a meeting on Tuesday that U.S. tariffs would trigger a shift in the industry away from Europe and toward the United States. Pharmaceuticals were initially exempt from the tariffs on U.S. imports announced by Trump last week.
The European Federation of Pharmaceutical Industries and Associations said it had called on the EU President to push for “rapid and radical action” to mitigate the “risk of exodus” to the United States. The federation added that the EU needs to change its regulatory framework for the industry to make it more conducive to innovation and strengthen Europe’s intellectual property provisions.
EU medical and pharmaceutical product exports to the United States totaled around $97.05 billion in 2023, according to the latest Eurostat data.
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Trump says China is imposing “unjustified” tariffs
During the event, the president also accused previous administrations of allowing China to take advantage of the U.S. through unfair trade practices, vowing that it would no longer happen under his leadership. He also accused China of imposing “unjustified” tariffs, noting that several countries had profited from tariffs over the years and that his own actions were now drawing unfair criticism.
Trump noted that a 104 percent tariff on Chinese goods would take effect at midnight, adding that they would remain in place until Beijing agreed to a new deal. “I think they’ll make a deal at some point,” he said, “China will. They want to make a deal. They really do.”
Earlier, the United States had announced that 104 percent duties on imports from China will come into effect on Wednesday. This decision coincides with President Donald Trump’s administration moving swiftly to initiate discussions with other trading partners affected by extensive tariffs.
The administration has already planned discussions with South Korea and Japan, two crucial allies and major trading partners. Additionally, Italian Prime Minister Giorgia Meloni is expected to visit next week to engage in talks.
