Trump reiterates plans to impose 200% tax on pharmaceuticals

Interested representatives from different countries have already responded to Trump’s statement.

Australia's Treasury Secretary Jim Chalmers called the latest round of tariffs "very worrying", while Reserve Bank Deputy Governor Andrew Houser warned they would have a "profound" impact on the global economy. Australia exports about $2.5 billion worth of drugs, vaccines and medical supplies to the US each year, accounting for about 40% of the world's annual exports of domestically produced medicines.

Almost 90% of the output is an immunological product – antiserum, according to the Australian Bureau of Statistics. Australian blood plasma producer CSL is likely to be hit hardest by the tariff plan. The company uses American blood products, including some processed in Australia before being exported back to the US.

Generics Association of Canada President Jim Keone believes that the country is not the main target of the US president's plans, but the proposed measures could still negatively affect certain segments of the Canadian market. According to Keone, generics account for about 90% of all prescriptions written in the US, while Canadian exports cover less than 5% of this market.

Such small volumes, Kyon stressed, are unlikely to raise concerns among U.S. officials about over-reliance on imports. However, if Canada does not receive an exemption, the consequences will affect both domestic and foreign companies producing drugs in the country. Because of the low margins of generics, some manufacturers may refuse to produce certain drugs for the domestic market if they lose access to the U.S.

Reggie Joseph, an associate professor at the Institute of Research in Industrial Development (ISID) in India, said local pharmaceutical companies may have to absorb some of the increased costs due to the US retaliatory tariffs. “But in the long term, the industry needs to develop strategies to diversify export markets and create more geographically dispersed manufacturing hubs to reduce future risks,” he said.

India currently has 13% of the US generics market by value, with annual shipments of around $10 billion. However, it accounts for more than 45% of domestic generic sales because Indian drugs are among the cheapest.

Since Donald Trump took office as US President in January 2025, his administration has repeatedly announced plans to initiate a campaign to increase customs duties to stimulate the transfer of production by national companies from abroad to the States. In particular, a duty of 25% was expected to be introduced on pharmaceutical products, then Trump named higher values. American pharmaceutical market operators are trying to adapt to the new conditions. For example, Johnson & Johnson announced investments of $55 billion in the construction of four manufacturing facilities, R&D, and the development of IT solutions in the United States. Details of the investment programs of large American pharmaceutical companies and Trump's plans for the United States to gain medicinal sovereignty are in the Vademecum review .