Trump Targets Drug Prices with New Tariffs and Domestic Manufacturing Push

Intermediate Level | May 6, 2025

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A New Plan to Lower Medicine Costs

President Donald Trump has announced a new plan to reduce the cost of prescription drugs in the United States. The plan includes introducing tariffs on imported medicines and encouraging domestic manufacturing of pharmaceuticals.

Trump stated that the U.S. relies too much on other countries for medicines, which can be risky during emergencies. By producing more drugs domestically, he believes the U.S. can ensure better access and lower prices for Americans.

Tariffs on Imported Medicines

Within the next two weeks, the Trump administration plans to announce tariffs on imported pharmaceuticals. These tariffs aim to encourage drug companies to manufacture their products in the U.S.

However, some experts warn that these tariffs could lead to higher drug prices in the short term, especially for generic medications that are commonly imported.

Executive Order to Boost U.S. Drug Manufacturing

To support domestic production, Trump signed an executive order directing the Food and Drug Administration (FDA) to streamline the approval process for new pharmaceutical manufacturing facilities in the U.S. The order also instructs the Environmental Protection Agency (EPA) to expedite the construction of such facilities.

The goal is to reduce the time it takes to build and approve new drug manufacturing plants, which currently can take up to 10 years.

Impact on Drug Prices and Access

While the administration believes these actions will lower drug prices in the long run, some healthcare experts and patient advocacy groups are concerned about potential short-term effects. They argue that tariffs could increase costs for consumers and limit access to certain medications.

The administration counters that bringing drug manufacturing back to the U.S. will ultimately lead to more stable prices and better access for American patients.

Vocabulary

Tariff (noun): A tax on goods coming into or going out of a country.
Example: The government imposed a tariff on imported medicines.
Pharmaceutical (noun): A drug used to treat or prevent disease.
Example: The pharmaceutical industry is growing rapidly.
Manufacturing (noun): The process of making products, especially in factories.
Example: The company is investing in domestic manufacturing.
Streamline (verb): To make a process more efficient.
Example: The new policy aims to streamline drug approvals.
Executive Order (noun): An official directive from the U.S. President.
Example: The President signed an executive order to reduce drug prices.
Generic Medication (noun): A drug that is equivalent to a brand-name product but usually cheaper.
Example: Generic medications help lower healthcare costs.
Access (noun): The ability to obtain or use something.
Example: The program improves access to essential medicines.
Facility (noun): A place where something is produced or provided.
Example: The new facility will manufacture vaccines.
Approval Process (noun): The steps required to get official permission.
Example: The approval process for new drugs can be lengthy.
Advocacy Group (noun): An organization that supports a particular cause.
Example: Advocacy groups are concerned about drug affordability.

Discussion Questions (About the Article)

What are the main goals of Trump’s new plan regarding drug prices?
How might tariffs on imported medicines affect consumers?
What steps is the administration taking to boost domestic drug manufacturing?
Why do some experts worry about the short-term effects of these policies?
How could these changes impact access to generic medications?

Discussion Questions (About the Topic)

Do you think producing medicines domestically is a good idea? Why or why not?
How do drug prices in your country compare to those in the U.S.?
What are the benefits and drawbacks of government involvement in drug pricing?
How can countries balance the need for affordable medicines with supporting pharmaceutical innovation?
What role should international trade play in a country’s healthcare system?

Related Idiom

“A double-edged sword”
Meaning: Something that has both positive and negative effects.
Example: “Introducing tariffs on medicines could be a double-edged sword—it might boost local production but also raise prices.”

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This article was inspired by Bloomberg, May 4, 2025.

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