In London, U.S. President Donald Trump recently restated his intention to impose tariffs on pharmaceutical imports that were previously exempt due to concerns about patient harm during trade disputes. While Trump initially excluded them from his tariff announcement last week, he later enforced tariffs on raw materials from China used in the pharmaceutical industry. He has specifically targeted drug manufacturing in Europe as an issue to be addressed with tariffs, which could potentially be set at 25% or higher.

Trump advocates for major U.S. drug companies like Eli Lilly, Johnson & Johnson, and Pfizer to manufacture more medications domestically to reduce reliance on other nations and to boost tax revenue. Some branded drugs contain ingredients produced in Europe, with Ireland being a significant center due to its favorable corporate tax rates. Trump has criticized U.S. pharmaceutical firms for registering intellectual property in Ireland to benefit from lower tax rates.

The President has also highlighted the insufficient domestic production of antibiotics, commonly sourced from China and India, as well as the higher prices paid for brand name drugs compared to other wealthy nations, particularly in Europe. Trump highlighted the difference in drug pricing regulations between the U.S. and other countries. While the U.S. lacks a national healthcare system that directly purchases drugs, other nations negotiate drug prices at a national level.

In response to Trump's tariff plans, drug manufacturers have urged for a phased approach to reduce the impact and allow time to adjust manufacturing processes. Companies like Eli Lilly have announced plans to increase investments in U.S. manufacturing under Trump's administration, while others such as Novo Nordisk are working towards producing more drugs domestically for the American market.