• Trump proposes steep tariffs on imported pharmaceuticals, starting small and escalating to 250%.
• AstraZeneca and other firms are increasing US investments amid tariff threats.
• Concerns rise over potential disruptions to drug supply chains and costs for patients.

President Donald Trump announced plans to impose steep tariffs on pharmaceuticals, starting with an "initially small tariff" that could escalate to 150% within 18 months and eventually reach 250%. This announcement aims to stimulate domestic manufacturing of pharmaceuticals, a concern highlighted in his recent interview on CNBC, where he stated, "we want pharmaceuticals made in our country," according to Indiatimes and The Hill.

The proposed tariffs, which could disrupt international supply chains, have prompted major pharmaceutical companies, including AstraZeneca, to commit substantial investments in U.S. manufacturing. AstraZeneca pledged $50 billion to expand its U.S. operations, reflecting a broader trend among drugmakers responding to Trump's tariff threats. Johnson & Johnson and Eli Lilly are also planning significant investments, amounting to billions, in U.S. facilities, according to Channel News Asia and Bangkok Post.

Concerns about these tariffs stem from potential increases in drug prices and subsequent economic fallout, potentially impacting millions of Americans. Analysts warn that while Trump aims to boost domestic production, the immediate consequences of such tariffs could lead to chaos in the pharmaceutical market, causing companies to weigh the implications of passing higher costs onto consumers, according to The Hill.

As the trade war escalates, Trump indicated plans for additional tariffs on semiconductors, marking a significant shift in U.S. trade policy. These developments follow a national security review concerning the pharmaceutical sector, aiming to reshape U.S. trade practices and reduce reliance on foreign suppliers, as reported by Channel News Asia and Bangkok Post.