Pharmaceutical Tariffs Are Coming and Will Be Separate From Reciprocal Tariffs: Report

The tariff situation continues to be unclear for the pharma industry.

In recent weeks, President Trump announced wide-spread tariffs on imports from America’s trading partners. These tariffs were placed on general imports and appeared to based on the existing trade deficits with each country. Less than a week later, however, the President announced a temporary pause in these tariffs. However, imports from China still face significant tariffs and a general 10% tariff against the other nations is still in place.

The situation became even more complicated this past weekend. The initial wave of tariffs included exemptions for pharmaceutical goods, along with certain electronic goods such as semiconductors. US Commerce Secretary Howard Lutnick appeared on “This Week” on ABC News to explain these exemptions, why they were put in place, and how long they will last.¹

“Over the past couple of months, President Trump has called out pharmaceuticals, semiconductors, and autos," Lutnick said. "He called them sector-tariffs. Those are not available for negotiation. They’re going to be part of making sure that we (Americans) re-shore the core national security items that need to be made in this country.”

President Trump has listed several reasons for imposing tariffs on imports. He discussed the tariffs as part of his campaign, and has continued to discuss them since winning the election and taking office.

Some tariffs are being placed on countries in an attempt to even out the trade deficit between those countries and the United States. Other tariffs are being placed on certain countries in order to pressure them into taking stronger action against the flow of illegal drugs or immigrants into the United States.

In the case of pharmaceuticals, the reasoning for the tariffs seems to be an attempt to pressure companies into moving more manufacturing to the United States.

Politco reports that Trump discussed the pharmaceutical tariffs at a dinner of the National Republican Congressional Committee.² At the event, Politico reports that he explained, “We’re going to be announcing very shortly a major tariff on pharmaceuticals. And 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 and they’re going to be opening up their plants all over the place.”

As Lutnick explained on ABC News,¹ the pharmaceutical tariffs will exist seperately of the reciprocal tariffs. President has not yet announced what the tariffs on pharmaceutical products will be. So far, these products have remained exempt from the tariffs put in place, but only because the administration plans to place separate tariffs on these products at a future date.

Sources

1. Semiconductors from China will face a ‘special-focus type of tariff’: Lutnick. ABC News. April 13, 2025. https://abcnews.go.com/ThisWeek/video/semiconductors-china-face-special-focus-type-tariff-lutnick-120763933
2. Svirnovskir, Gregory. Trump says ‘major’ pharmaceutical tariffs on the way. Politico. April 8, 2025. Accessed April 14, 2025.