Illustrative image  (Photo: REUTERS)

The Trump administration launched an investigation into imported drugs in April to determine whether the industry’s reliance on foreign suppliers warrants new tariffs. Until now, pharmaceuticals have been exempted from trade duties due to their essential nature.

Trump has urged companies to restore manufacturing to the US. He sent letters to 17 major pharmaceutical companies last week, asking them to commit to a phased reduction in US drug prices by September 29. A key requirement is that each company must offer its entire existing drug portfolio to Medicaid beneficiaries at no higher than the lowest price charged in any other developed country.