Trump 100% pharma tariffs raise concerns for New Jersey life sciences (updated)

The basics:

• Trump administration to impose up to 100% tariffs on imported patented drugs, key ingredients
• Policy aims to shift pharmaceutical manufacturing, R&D back to the US
• New Jersey life sciences leaders warn tariffs could raise costs, hinder innovation
• Companies can qualify for reduced tariffs by committing to US investment, pricing requirements

The Trump administration will impose 100% tariffs on imported patented pharmaceuticals and key drug ingredients. The sweeping move could have significant implications for New Jersey’s leading life sciences sector.

President Donald Trump announced the tariffs through a Section 232 proclamation April 2. The move aims to force more pharmaceutical manufacturing back to the United States. It comes amid concerns that heavy reliance on foreign production threatens national security and supply chain stability. The Trump administration cited data showing the U.S. imports a majority of patented drugs as well as the vast bulk of active pharmaceutical ingredients.

Companies that commit to shifting production and research to the U.S. can qualify for a reduced 20% tariff. The rate is set to increase to 100% within four years. That is, unless companies meet additional federal requirements tied to pricing and domestic investment. Certain trading partners and firms that strike pricing and onshoring agreements with the federal government may receive lower – or even zero – tariff rates.

Generic drugs are exempt for now.

For New Jersey – one of the nation’s leading biopharma hubs – the policy introduces both opportunity and risk.

Exposing vulnerabilities

Debbie Hart is president and CEO of BioNJ. She said her organization has deep concerns about the tariffs’ potential impact, even as it supports efforts to maintain U.S. leadership in biomedical innovation.

“BioNJ stands firmly in support of the fundamental mission of ensuring that the United States remains the dominant source of biomedical innovation worldwide — with New Jersey being home to one of the central nuclei of that innovation,” Hart said. “The life sciences is one of the crown jewels of the U.S. economy, and it continues to be central to the success of both New Jersey and to patients across the country and needs to be protected.”

She warned the policy could create headwinds for the innovation ecosystem.

“These policies are uniquely damaging to the engines of biomedical innovation: small- and medium-sized biotechnology companies and ultimately will affect the entire system that produces the medicines that patients need,” she said.

These policies are uniquely damaging to the engines of biomedical innovation…
– Debbie Hart, president and CEO, BioNJ

Hart emphasized the organization’s ongoing engagement with policymakers.

“BioNJ will continue to connect with policymakers in D.C. and in Trenton to convey the unique features of this sector that make it particularly vulnerable to these trade policies,” she said.

A ‘barrier’ to innovation

Chrissy Buteas, president and CEO of the HealthCare Institute of New Jersey, echoed those concerns. She pointed to the state’s deep reliance on global supply chains and high-cost research and development.

“Tariffs on the ingredients or raw materials that produce those life-saving medicines, medical devices or innovative technologies will harm America’s global leadership, New Jersey’s workforce and economy, and dash the hopes of patients everywhere,” Buteas said. “As the life sciences work to increase our domestic R&D and manufacturing capabilities, strengthening national security and American jobs while still researching and discovering cutting-edge medical advances, these tariffs become a barrier to those efforts.

“This is particularly true for the small and mid-sized innovative companies, many of which are here in New Jersey, whose R&D investments are so significant they can’t absorb rising costs or rapidly shift manufacturing strategies while still delivering for patients.”

She added that HINJE will continue to work with policymakers on potential solutions “that lower barriers to innovation, accelerate the development of new treatments and cures, and reinforce the United States’ and New Jersey’s global leadership in biopharma and medical technology innovation.”

Evolving trade policy

The move also comes amid a volatile legal and policy landscape for tariffs.

In February, the U.S. Supreme Court struck down a separate set of levies Trump issued under emergency powers. According to the ruling, that authority rests with Congress.

The decision, however, left intact the administration’s ability to pursue tariffs under other statutes, including Section 232.

New Jersey has already taken an active role in challenging federal trade policy.

The state joined a multistate lawsuit in March opposing additional tariffs imposed under a different authority. Officials have argued such measures raise costs for businesses and consumers and create economic uncertainty.

What happens next will determine whether the policy drives new investment in New Jersey, or adds new strain to one of its most critical industries.

Editor’s note: This story was updated at 4:22 p.m. April 3, 2026, with additional background from reporter Kimberly Redmond (see box).