Major pharmaceutical companies are lobbying the Trump administration to delay or phase in steep tariffs on imported medical products, as the White House prepares to unveil a sweeping trade policy that could impose a 25% duty on drugs, according to four industry sources familiar with the discussions.
President Donald Trump is expected to announce his long-anticipated tariff strategy on Wednesday, signaling a dramatic expansion of U.S. trade measures to include the pharmaceutical sector, which has so far avoided earlier rounds of tariff actions. A separate proposal under consideration would impose a 20% tariff on most imports, according to reporting by The Washington Post.
"The idea of incremental ramp up of tariffs, a sort of gradation if you will, is definitely out there from the pharma industry side," one of the sources said, reflecting concerns among drugmakers that a sudden 25% tariff could trigger significant supply disruptions and cost increases.
The Pharmaceutical Research and Manufacturers of America (PhRMA), the industry's main lobbying group, has warned in recent meetings with administration officials that moving drug production to the U.S. is a complex and time-consuming process. "It can take 5 to 10 years and $2 billion to bring on a new production facility in the U.S.," one source noted.
The proposed tariffs would follow the administration's broader "reciprocal" tariff framework, which aims to penalize countries with large trade surpluses with the U.S. Trump stated Sunday that the plan will apply to "all nations," not just those with the largest imbalances.
Industry officials fear the sudden imposition of tariffs could lead to drug shortages and hurt patient access. Some companies have already begun shipping medicines to the U.S. by air to front-run potential disruptions.
Pharmaceutical companies with global manufacturing footprints-including Johnson & Johnson, Eli Lilly, AstraZeneca, and GSK-have announced billions in new U.S. investments in recent months, yet many still rely on Europe and Asia for production of active pharmaceutical ingredients.
The White House has not confirmed whether specific pharma tariffs will be included in Wednesday's announcement. However, several sources indicated the administration may first commission a study to examine how such tariffs should be applied, opening the door for further industry input.
Some lobbyists are also relying on the regulatory process to slow implementation. Under current federal law, any significant policy change may require public notice and comment periods, offering time to negotiate or delay enforcement.
Stock markets have already reacted to trade uncertainty. The S&P 500 fell 4.6% in Q1 2025, while the Nasdaq dropped 10.4%. Economists warn that across-the-board tariffs could raise inflation and dampen growth, particularly if trading partners retaliate with duties on U.S. goods.
