Trump's tariff threat to lower drug prices draws skepticism

President Donald Trump's latest gambit to reduce drug prices has pharmaceutical companies on edge, but experts are skeptical about its effectiveness.

Tariffs on imports could backfire, analysts warn

If drugmakers fail to cut prices, Trump has threatened to impose 100% tariffs on all imported pharmaceuticals, as well as on ingredients made or used by U.S. companies. The move is seen as an attempt to pressure manufacturers into offering discounts.

However, terminating the special status of drug imports could lead to shortages and higher costs in the long run, according to industry insiders and some economists. They argue that tariffs would raise prices for U.S. consumers, not lower them as intended.

The Trump administration's logic appears to mirror its approach to trade, using tariffs to reshape the economy. But drug pricing is a far more complex issue, with multiple factors at play, including patent protections, research costs, and international competition.