Trump lifts most tariffs, promises ‘major’ levies on pharmaceuticals
President Donald Trump placed a 90-day pause on most of his plan to issue varying tariffs on goods coming from other countries. However, a baseline 10% tariff across the board remains in effect. Tariffs placed on China have been boosted to 125% in response to China announcing an increase of its own.
Trump made the announcement Tuesday on Truth Social, writing that the change comes after “more than 75 countries have called representatives of the U.S. in an effort to negotiate a solution to the subjects being discussed relative to trade, trade barriers, tariffs, currency manipulation and non-monetary tariffs.”
The broad tariff reduction—along with the increase to 125% levied on China—is “effective immediately,” he added.
However, the sudden change in policy does not mean future tariffs won’t go into effect. On Monday, Trump said in a speech that the pharmaceutical industry will be hit with “major” tariffs, the specifics of which will be announced at a later date.
“We’re going to tariff our pharmaceuticals,” Trump told the National Republican Congressional Committee. “And once we do that, they’re going to come rushing back into our country because we’re the big market.”
Initially, pharmaceutical drugs were exempt from Trump’s global plan to tax foreign goods, aside from the 10% base rate. The president did not say when he would announce the tariffs on imported drugs.
Before backtracking on his nation-specific tariffs—tariffs he previously referred to as “reciprocal”—Trump posted a cryptic message on Truth Social, seemingly alluding to the stock market, which has fallen to lows not seen since the COVID-19 pandemic in 2020.
“THIS IS A GREAT TIME TO BUY!!! DJT,” the president wrote minutes after public trading markets opened on Tuesday.
Indices measuring the S&P 500 rose almost 11% on the day, both before and after the tariffs were lifted.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.