US President Donald Trump is now taking aim at the pharmaceutical industry. According to Bloomberg, Trump plans to impose tariffs on medical drugs, marking a dramatic turn of events.

Tariffs on pharmaceutical products are expected to be implemented by late July. Initially, the rates will be low, but they are set to climb to maximum levels over the course of the year. The White House is reportedly considering a similar approach for imported semiconductors. Experts note these steps may coincide with the launch of the broader reciprocal tariff regime on August 1.

“Probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff,” the president said.

At a cabinet meeting in early July, Trump signaled his readiness to increase tariffs on imported pharmaceuticals to as much as 200%. However, this move would only occur after giving manufacturers a year to bring production back to the United States. According to the US leader, a flood of foreign drugs threatens national security.

Back in mid-May, the president announced an executive order targeting drug pricing. He noted that medicines sold in the US have long cost five to ten times more than in any other country in the world. Trump said the order he signed aims to reduce domestic drug prices by 30% to 80%. However, he acknowledges that prices will likely rise globally, framing this as a necessary trade-off to finally "bring fairness to America" after years of unfair pricing.

Analysts believe that Washington has multiple levers it can use to pressure pharmaceutical companies. However, they also caution that firms with narrow product portfolios may see margin compression. To offset these losses, some companies may have to raise prices in foreign markets.