AsianFin -- U.S. President Donald Trump has threatened to impose steep tariffs on imported pharmaceuticals, claiming the move would “lower drug prices and enhance national security.” However, industry experts caution that these objectives may prove elusive given the complexities of global supply chains and the high cost of domestic manufacturing.

Trump’s remarks have injected fresh uncertainty into the U.S. pharmaceutical sector, with healthcare stocks broadly declining on August 1 in response to the tariff threats. Analysts say the proposed tariffs risk driving up operational costs for drugmakers while offering limited benefits for consumers.

In a bid to sidestep potential tariffs, several major pharmaceutical companies have announced ambitious investment plans to bolster domestic production. Johnson & Johnson pledged to invest $55 billion to strengthen its U.S. manufacturing and R&D capabilities. Eli Lilly said it would spend $27 billion to build four new pharmaceutical plants in the U.S. Meanwhile, AstraZeneca, a multinational drugmaker, committed $50 billion to expand its U.S.-based production facilities.