The administration is expected to release findings from a separate semiconductor investigation first, with other high-profile events also contributing to the delay.
A White House decision on the results of its national security probe into pharmaceutical imports and planned sector-specific U.S. tariffs is reportedly weeks away, later than initially expected, as the White House focuses on other priorities.
Commerce Secretary Howard Lutnick said in April that the review, launched under Section 232 of the Trade Expansion Act of 1962, would conclude between mid-May and mid-June, Reuters reported, citing four sources familiar with the matter.
The investigation covers imports ranging from finished prescription drugs to active pharmaceutical ingredients (APIs) and other raw materials, and will form the basis for tariffs that President Donald Trump has said could start small and rise to 250%.
The delay follows repeated extensions, with Lutnick most recently projecting a completion in mid-August.
An announcement before the end of August is reportedly unlikely, with the administration expected to release findings from a separate semiconductor probe first. The U.S.-Russia summit in Alaska on Friday is likely another reason for no immediate action.
The pharmaceutical sector has so far been exempt from sweeping Trump-era tariffs but could face new duties unless covered by bilateral trade deals the U.S. has reached with the UK, Japan, South Korea and the European Union, which promise more favorable terms.
Trump has said the plan would phase in tariffs to give drugmakers time to shift their manufacturing to the U.S. However, drugmakers have warned that such duties could raise costs and undercut efforts to lower drug prices.
On Stocktwits, retail sentiment for the Health Care Select Sector SPDR Fund (XLV) was ‘neutral’ amid ‘low’ message volume, while sentiment for the iShares Global Healthcare ETF (IXJ) was ‘bearish’ with ‘extremely low’ activity.
So far this year, XLV has fallen 2.3%, while IXJ has edged up 0.2%.
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