Trump signals potential 250% tariffs on pharmaceuticals, says chips plan coming

US President Donald Trump told CNBC’s “Squawk Box” on August 5 that planned tariffs on pharmaceuticals imported into the United States could eventually reach as high as 250%, marking the most aggressive tariff threat he has made to date.

“We want pharmaceuticals made in our country,” Trump said during the interview.

He explained that the tariffs will begin with a “small tariff” but could rise to 150% and eventually 250% within a year to a year and a half.

While Trump has repeatedly threatened tariffs and then shifted his stance, there is no certainty that the 250% tariff rate will be implemented. Earlier in July, the president had threatened 200% tariffs on pharmaceuticals.

In the same interview, Trump also revealed plans to introduce new tariffs on semiconductors and chips “within the next week or so.”

“We’re going to be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States,” he said, without providing further details.

The global demand for semiconductors and microchips has surged, driven by their integration across nearly all sectors of the economy, including the rapidly growing artificial intelligence industry.

Most of the world’s most advanced semiconductors are produced in Taiwan, where major chipmaker TSMC supplies companies such as Apple, Nvidia, Qualcomm, and AMD.

By Sabina Mammadli