The US government has long sought to shift pharmaceutical manufacturing back to domestic soil, citing both economic and national security concerns.

The tariffs are Trump’s way of getting drug companies to move more of their operations to the U.S. at a time when domestic drug manufacturing has declined. Eli Lilly has been quick to comply, announcing plans to invest at least $27 billion to build four new manufacturing sites across America.

President Donald Trump said on Tuesday that the United States would initially place a "small tariff" on pharmaceutical imports before hiking it to 150% within 18 months and eventually to 250% in an effort to boost domestic production.