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Big Pharma Braces for Trump’s Tariff Wall
A 25% tariff on drug imports could raise U.S. drug costs by $51bn annually and increase prices by up to 12.9% if passed on.
Kieran Ryan
May 08, 2025
In partnership with
TODAY’S STORY
Trump says he will announce pharmaceutical tariffs within two weeks, similar to the 25% levies on steel, aluminum, and cars. He suggests companies will be given time to relocate to the U.S. before facing a "tariff wall."
Americans would suffer the most, as medications would become more expensive and potentially unaffordable for some people. A 25% tariff on drug imports could raise U.S. drug costs by $51bn annually and increase prices by up to 12.9% if passed on, according to EY.
The U.S. imported $203bn in pharmaceutical products in 2023 alone, with 73% coming from Europe, primarily Ireland, Germany, and Switzerland.
However, the tariff strategy is starting to drive some drugmakers to make concessions:
Roche: $50bn U.S. investment over 5 years
Novartis: $23bn U.S. commitment over 5 years
AstraZeneca: $3.5bn investment in November; shifting some U.S.-bound production from Europe
Eli Lilly: $27bn across four new U.S. sites
Pharma’s learning what every Trump-targeted industry already knows: relocate or bleed margins.
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Thanks for reading,
Kieran & Justin Ryan
