Trump announces huge tariff on medicines; he could devastate the Hungarian pharma sector
US President Donald Trump announced plans Tuesday to impose escalating tariffs on pharmaceuticals, starting with small levies that will reach 250% within years to encourage domestic production.
“On pharmaceuticals, we’ll be putting a, initially small tariff … but in one year, one and a half years, maximum, it’s going to go to 150% and then it’s going to go to 250% because we want pharmaceuticals made in our country,” Trump told CNBC.
He cited concerns about foreign dependency on drugs, in the context of the trade deficit the US has with Switzerland, the Turkish news Agency, Anadolu, wrote. Trump referenced discussions with Swiss Confederation President Karin Keller-Sutter about the $41 billion trade deficit, underlining pharmaceuticals as a major profit center.
Pharmaceutical tariffs will be announced soon
“They make a fortune with pharmaceuticals. And they make our pharmaceuticals in China and Ireland and everything else,” he said. Trump indicated the pharmaceutical tariffs will be announced “within the next week or so” in a separate class from his general tariffs, similar to exclusions for steel and aluminium.
Switzerland faces 39% duties under Trump’s latest trade policies, among the highest imposed. Trump recently urged 17 major pharmaceutical companies to implement “Most-Favoured-Nation” pricing for American patients within 60 days. Keller-Sutter and the Vice President Guy Parmelin are heading to Washington on Tuesday to discuss the new US tariffs on Switzerland.
Trump’s tariff would harm Hungary significantly
In the USA, an ongoing national security investigation into pharmaceutical imports has created temporary tariff uncertainty. The probe will decide whether additional duties are justified on national security grounds. However, it appears Trump has already made up his mind.
Hungary’s pharmaceutical exports reached EUR 7.8 billion in 2023. The primary targets were Germany and the EU, but the USA remains a significant non-European market, with trade valued at almost USD 200 million last year.
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