Americans would suffer most if Trump imposes pharma tariffs, sector warns

A 25% tariff would increase drug costs in the US by almost $51bn (£38bn) a year, raising prices by up to 12.9% if passed on, according to EY. Photograph: George Frey/Getty Images

Americans would suffer most if Donald Trump imposed tariffs on imports of pharmaceuticals, as medications would become more expensive and potentially unaffordable for some people, drugmakers have warned.

Drugmakers have been braced for targeted border taxes – similar to the 25% levies on steel, aluminium and car imports – after the US president threatened to hit the sector and announced an investigation last month. Last week, Trump hinted at a possible reprieve for companies, saying they would be given time to move their operations to the US, But “after that it’s going to be a tariff wall put up, and they won’t be happy about it,” he added.