BBP - Trump Set To Break WTO Rules With Potential Pharma Tariffs

2025-02-20 01:50:00 ET

Summary

• Donald Trump's threat of 25% or more tariffs on pharmaceuticals imported to the US would be a bitter pill to swallow for both consumers and producers, as costs will increase particularly in the short run.
• We estimate that the US consumed roughly $560 billion of pharmaceutical products in 2024, of which roughly $200 billion was imported.
• Although the timing of tariffs is uncertain, we believe that it is likely that Trump will not want to wait two to three years to impose a tariff on pharmaceuticals.

By Diederik Stadig

President Trump's announcement marks a clear shift in trade policy

The tariff threats keep on coming from the US President. On Tuesday, along with cars and semiconductors, he stated that his administration intends to hit pharmaceuticals with 25%+ tariffs. This marks a clear break from WTO rules, which exempt all pharmaceutical products from tariffs....

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