U.S. Pharma Tariff Announcement Faces Weeks-Long Delay Amid Ongoing Probe

By / / Breaking News

Key Takeaways

  • A highly anticipated announcement regarding the U.S. pharma sector probe and potential tariffs is expected to be delayed by several weeks, according to recent reports.
  • The delay comes as the Commerce Department continues its Section 232 investigation, launched on April 1, 2025, to assess the national security implications of pharmaceutical imports.,
  • Despite a 15% tariff on pharmaceutical imports from the European Union being part of a July 2025 trade deal, its full implementation hinges on the conclusion of this ongoing Section 232 probe.
  • Major pharmaceutical companies, including Eli Lilly (LLY), Johnson & Johnson (JNJ), Novartis (NVS), AstraZeneca (AZN), Sanofi (SNY), and Roche (ROG.SW), have already committed billions to enhance U.S. manufacturing capabilities in anticipation of new duties.,,
  • Analysts caution that the imposition of tariffs could increase costs across the pharmaceutical supply chain, potentially leading to higher drug prices for American consumers.

The U.S. government's announcement concerning its ongoing probe into the pharmaceutical sector and the potential imposition of new tariffs is likely to be delayed by several weeks, sources indicate. This deferment prolongs uncertainty for an industry already grappling with significant trade policy shifts.

The Commerce Department initiated a sweeping Section 232 investigation on April 1, 2025, examining the impact of pharmaceutical imports on national security., This probe covers a wide range of products, including branded and generic medicines, as well as active pharmaceutical ingredients (APIs). Historically, Section 232 has been used to impose tariffs on imports like steel and aluminum.,

While a 15% tariff rate on pharmaceuticals from the European Union was announced as part of a broader U.S.-EU trade agreement on July 29, 2025, its activation is contingent upon the conclusion of the Section 232 investigation. The outcome of this probe was initially anticipated by August. President Donald Trump had previously signaled intentions for tariffs as high as 200% on foreign-made pharmaceutical products.,

In anticipation of potential duties, several leading pharmaceutical companies have announced substantial investments to bolster their U.S. manufacturing footprint. Eli Lilly (LLY) has committed $27 billion, while AstraZeneca (AZN) and Roche (ROG.SW) have pledged $50 billion each., Johnson & Johnson (JNJ) plans to invest $55 billion, and Sanofi (SNY) has earmarked $20 billion through 2030., Other companies like Novartis (NVS), Pfizer (PFE), and Merck (MRK) have also taken steps, including increasing inventory, to mitigate potential risks from tariffs.,

Industry analysts and economists warn that new tariffs could significantly elevate costs throughout the pharmaceutical value chain. This increase in operational expenses for drugmakers is ultimately expected to translate into higher prescription drug prices for American patients. Despite these concerns, some pharma CEOs have publicly downplayed the immediate impact, though they acknowledge the need for greater clarity from the administration.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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