US President Donald Trump says he will soon announce “major” tariffs on imported pharmaceuticals, a step that may end the decades of low -cost global trade in drugs.

For years, most countries including the US have not imposed anything or any tariff on prepared medicines, thanks to the 1995 World Trade Organization (WTO) agreement, which aims to keep drugs cheaper.

The innings came out after Trump introduced the blanket 10% tariff on other imports last week, which is as part of the broad attempt to bring manufacturing back to the US.

His new “mutual” tariff – with a duty of 104% on goods coming from China – came into force on Wednesday, intensifying a global trade war and further shaking markets.

Pharmaceutical buyers, so far are spared by such measures, are now preparing what can come next.

The US has commonly imported large amounts of finished drugs from India, Europe and China without buyers paying tariffs – although active pharmaceutical material (API) is used to make drugs, faces some duties.

Speaking at a funderizer dinner for his Republican party on Tuesday, Trump said: “We are going to announce a major tariff very soon on pharmaceuticals. And when they hear, they will leave China.”

He also told reporters in an Air Force aircraft last week that “pharma” tariffs would reach a level that you have not really seen before “, saying that it would be declared” in the near future “.

In 2024, the US imported $ 213BN (£ 168bn) drugs – more than two and a half times a decade ago.

During the reduction of detail, his comments have disturbed buyers, especially depending on Indian imports. India supply cheap versions of all American generic, or popular drugs, which saves billions of the country in the cost of health care.

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Indian pharma stock fell rapidly on the news. India sends a third of its $ 13BN annual pharma exports to the US, a major market.

Currently, American Indians do not pay little or any tax on imports – compared to the duty of about 11% paid by Indians importing American drugs.

Indian drug manufacturers warns that tariffs will force them to raise prices, which can eventually run the US medical bill. While Cipla and Dr. Reddy has US plants, most say that moving production is not feasible for low-margin generic drugs.

European drug manufacturers are also cautious. After a high-level meeting between European Commission Chairman Ursula von Der Leyen and top pharma firms on Tuesday, the European Federation of Pharmaceutical Industries and Association (EFPIA) warned that tariff production could be away from Europe and America.

EFPIA, whose members include major pharmaceutical companies such as Bayer, Novartis and Novo Nordisk – the manufacturer of Star Diabetes Type 2 Drug Ozmpic – expressed concern that growing tariffs could interrupt Europe’s role as a major player in global pharmaceutical production.

In 2024, the Pharmaceuticals was the largest export of the European Union to the US, priced at $ 127BN (£ 100BN).

Major companies have urged the European Union to work rapidly, seeking policy changes to increase Europe’s competitiveness and prevent “Mass Exodus” for the US. They have also expressed concern about the anti -European Union retrorship tariffs, which can disrupt supply chains and affect patients on both sides of the Atlantic.

Global pharma giant such as GSK and Fizer operate in many countries including Ireland and Germany, which means that new tariffs can disrupt many parts of the supply chain.