Move production to US or face tariffs, Trump warns drugmakers

• Published On: 22 February 2025 at 19:39

President Donald Trump warned drugmakers in a private meeting that tariffs would be imposed and urged them to relocate overseas manufacturing to the United States, according to sources familiar with the discussions.

He also refused to commit to weakening a drug pricing program enacted by President Joe Biden, despite industry efforts to do so.

Trump's stance suggests that the pharmaceutical industry may struggle to gain White House support.

Despite his pro-business reputation, he had a tense relationship with drugmakers during his first term, accusing them of "getting away with murder" over drug pricing.

On Thursday, Trump met with top pharmaceutical executives at the White House, including Eli Lilly CEO David Ricks, Merck CEO Robert Davis, Pfizer CEO Albert Bourla, and industry lobbyist Stephen Ubl.

The executives sought his support for repealing a law that allowed federal drug price negotiations, as well as policies aimed at middlemen who are blamed for rising out-of-pocket costs.

Executives urged Trump to support equalising the duration of drug exclusions under the price negotiation program.

According to sources familiar with the meeting, Trump declined to commit, citing concerns that changes in drug pricing policy would complicate Republican efforts to pass tax reform.

On Friday, Trump reiterated his first-term complaint that the United States overpays for prescription drugs when compared to other countries.

According to the White House, Health Secretary Robert F. Kennedy Jr. and Medicare nominee Mehmet Oz are working to reduce drug prices.

"I hope you focus really a lot on the cost too, because Americans have been screwed, and it's no good, not going to put up with it," said Trump to Kennedy.

Trump mentioned that Americans pay more for the same prescription drugs than people in London, but he did not specify which medications.