financetom
Economy
financetom
/
Economy
/
Exclusive-US pharma tariffs likely weeks away as Trump plans for Alaska, sources say
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Exclusive-US pharma tariffs likely weeks away as Trump plans for Alaska, sources say
Aug 13, 2025 1:19 PM

WASHINGTON (Reuters) -The announcement by President Donald Trump's administration of the results of a probe into pharmaceutical imports and new sector-specific U.S. tariffs likely remains weeks away, four official and industry sources said, later than initially promised as he focuses on other matters.

Commerce Secretary Howard Lutnick had said in April when the review of whether reliance on foreign drug production threatens U.S. national security was launched that he anticipated that it would conclude between mid-May and mid-June. Global pharmaceutical companies are bracing for the outcome of the investigation, which will usher in sector-specific tariffs that Trump has said could start small and eventually rise to 250%. 

The Republican president said as recently as last week that his plan relies on phased-in tariffs, giving drugmakers time to increase manufacturing in the United States as he pushes to alter what he says are global trade distortions in many industries.

One government official in Europe and a source with knowledge of the White House process, as well as two sources at European drug firms familiar with the process, told Reuters that the report and tariffs announcement was not imminent and likely weeks away. These sources spoke on condition of anonymity.

A White House spokesperson, asked about media reporting indicating that the results of the probe could be several weeks away, cautioned that such reports were pure speculation unless confirmed by the White House. The spokesperson declined to give further details about the timing of the pharma probe or one involving semiconductors.

The investigation is examining pharmaceutical imports ranging from finished prescription drugs to active pharmaceutical ingredients, called APIs, and other raw materials, with the results to be disclosed in a Commerce Department report. 

Lutnick said last month the tariff plan that will be based on the report would be completed by the end of July. Lutnick then said on July 29 it would be two more weeks.

The investigation was launched under Section 232 of the Trade Expansion Act of 1962. While the investigation is ongoing, the pharmaceutical sector has been exempted from the sweeping tariffs imposed by the Trump administration. 

The United States has reached bilateral trade deals with the UK, Japan, South Korea and the European Union that promised more favorable terms for their pharma exports than those expected to be levied on the sector globally.

A European government official said that an announcement before the end of August appears unlikely but cautioned that the timeline could shift depending on other developments. 

A source at a European drugmaker said the Trump administration is focused on the U.S.-Russia summit in Alaska on Friday and therefore no announcement is expected this week.

The source familiar with the White House process said that announcement is unlikely to come this week given other priorities.

That source and one other source said that they expect the Trump administration to announce the results of its national security investigation into semiconductors first, followed by the pharma announcement, putting it a few weeks away.  

The Section 232 provision authorizes the president to adjust imports - including imposing tariffs - if a category of goods is being imported into the United States in quantities that "threaten or impair the national security."

Medical goods historically have been spared from trade wars due to the potential harm to patient access, and drugmakers have said tariffs could undercut other health policy goals outlined by the Trump administration, including lowering drug prices. 

U.S. tariffs on imported pharmaceutical products would mark the latest in a series of sectoral tariffs announced by the administration, following metals and cars, that some economists have predicted will drive up costs for American consumers.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Hurricanes, strikes seen denting US job growth as Americans prepare to vote
Hurricanes, strikes seen denting US job growth as Americans prepare to vote
Nov 1, 2024
WASHINGTON (Reuters) - U.S. job growth likely slowed sharply in October amid disruptions from hurricanes and strikes by aerospace factory workers, but a steady unemployment rate should offer assurance that the labor market remained on solid footing ahead of Tuesday's election. The Labor Department's closely watched employment report scheduled for release on Friday will be the last major economic data...
US manufacturing drops to 15-month low in October
US manufacturing drops to 15-month low in October
Nov 1, 2024
WASHINGTON (Reuters) - U.S. manufacturing activity slumped to a 15-month low in October and factories faced higher prices for inputs. The Institute for Supply Management (ISM) said on Friday its manufacturing PMI fell to 46.5 last month, the lowest level since July 2023, from 47.2 in September. A PMI reading below 50 indicates contraction in the manufacturing sector, which accounts...
Recent data has kept Fed rate view, soft landing, intact
Recent data has kept Fed rate view, soft landing, intact
Nov 1, 2024
WASHINGTON (Reuters) - A data-heavy week has kept the U.S. Federal Reserve's core view intact of an economy where price pressures continue to ease and the job market continues to bend but not break amid ongoing economic growth. Employment data for October was among the weakest of recent reports, with prior months revised lower and only 12,000 jobs added. The...
Low US weekly jobless claims, solid consumer spending showcase economy's strength
Low US weekly jobless claims, solid consumer spending showcase economy's strength
Oct 31, 2024
WASHINGTON (Reuters) -The number of Americans filing new applications for unemployment benefits fell to a five-month low last week and consumer spending increased more than expected in September, showcasing the economy's strength heading into the final stretch of 2024 and just days before next Tuesday's presidential election. Though prices pushed higher last month, inflation is firmly on a downward trend,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved