US President Donald Trump said Tuesday that tariffs on pharmaceutical imports could reach 250%, the steepest rate he has proposed for the sector.
Trump, who in July threatened 200% duties, wants to motivate drug companies to move operations to the US; several industry giants including Eli Lilly and Johnson & Johnson have announced US investment plans this year in a bid to build goodwill. But the complexity of supply chains means the companies’ moves are unlikely to reduce US reliance on foreign sources, CNN reported.
Trump’s latest threat comes as major drug firms report earnings this week. Pfizer raised its profit outlook Tuesday despite looming tariffs, with its CEO hopeful that the duties will start out small.
