Trump Revives Pharma Tariff Threat – What Global Biotech Should Watch For

17 July 2025

Trump Revives Pharma Tariff Threat – What Global Biotech Should Watch For

In a familiar blend of rhetoric and ambiguity, US President Donald Trump has again raised the prospect of imposing sweeping tariffs on foreign-made pharmaceutical products—this time suggesting rates as high as 200%. The policy, first floated during his previous administration, would be paired with a grace period to allow companies time to “get their act together” and reshore manufacturing to the United States.

While the details remain unclear, the announcement shows the US is once again signalling its intent to use trade policy as leverage to reconfigure global pharmaceutical supply chains. Whether or not the plan comes to fruition, the implications for global biopharma—particularly companies operating in or exporting from Ireland, India and China, who make up the top three exporters to the US—are significant.

Ireland, in particular, has been singled out. In 2024, it accounted for over $50 billion of US. pharmaceutical imports, making it by far the largest exporter to the American market. India and China followed at $12 billion and $8 billion respectively. Trump’s repeated targeting of Ireland reflects a broader frustration with tax incentives that have drawn US pharma manufacturing offshore over the last two decades.

“When the pharmaceutical companies started to go to Ireland, I would have said, that’s OK, if you want to go to Ireland. I think that’s great,” President Trump said back in March.

“But if you want to sell anything into the United States, I’m going to put a 200% tariff on you so you’re never going to be able to sell anything into the United States.”

What makes this round of threats different is the backdrop. A Section 232 investigation—typically reserved for probing national security risks associated with imports—is now underway for pharmaceutical products. The outcome, expected by the end of July, could provide a legal framework for implementing tariffs, bypassing traditional trade agreements. If the Department of Commerce deems pharmaceutical imports a national security risk, tariffs could be imposed unilaterally under existing trade law.

Still, the pharmaceutical industry has been here before. Tariff talk has become a familiar feature of Trump’s trade doctrine, and actual follow-through has been inconsistent. Pharma share prices remained stable following this week’s announcement, amidst uncertainty around whether the administration will follow through.

The idea of a phased approach—a year to 18 months of grace—also isn’t new. Trump first hinted at this strategy in April during a rally promoting domestic investment, promising time for manufacturers to onshore before erecting what he called a “tariff wall.”

For global pharma companies, this is yet another reminder of the geopolitical risks baked into cross-border operations. From a trade and policy standpoint, companies will be watching closely for outcomes from the Section 232 investigation. If the probe concludes that reliance on foreign manufacturing poses a national security threat, it could set a precedent for pharmaceutical protectionism, under an administration that has made reshoring a central economic theme.

In this political landscape, the pharmaceutical industry faces a familiar but pressing question: how to plan for policies that may never materialise—but could, if enacted, reshape global drug supply chains overnight.