Navigating the 250% Tariff Threat: Michelle Schulz on LiveNOW from FOX
- Schulz Trade Law
- Aug 8
- 3 min read
Navigating the 250% Tariff Threat
Michelle Schulz on LiveNOW from FOX
Rising Costs and Uncertainty: Michelle Schulz Discusses the Impact of Proposed Pharmaceutical Tariffs
August 7, 2025
The Staggering Scale of 250% Tariffs
In her appearance on LiveNOW from FOX, Michelle Schulz, Founder and Managing Partner of Schulz Trade Law PLLC, called the proposed pharmaceutical tariffs “a massive amount” with potentially far-reaching consequences.
“In the past, we were talking about tariffs around 5% or 7%—I used to think that was high. So when you think about 250% by next year, the cost of pharmaceuticals will have to increase.”
President Trump’s plan would start with a small tariff, rising to 150% within 18 months and ultimately 250%, with the stated aim of boosting U.S. manufacturing. Schulz cautioned, however, that even with that goal, “there’s going to be a transition period before the infrastructure is in place, and before that’s really possible.”
Goals and Realities of Tariff Policies
Schulz explained that the tariffs are intended to both encourage domestic production and reduce costs through Most Favored Nation (MFN) status, a World Trade Organization (WTO) principle granting favorable tariff rates to allied countries.
“Countries that are friendly with us have what they call most favored nation status… They are granted a specific tariff rate or a level of tariffs that are within a range. But that probably is not enough to offset the 250% that we may see next year.”
While some companies are “scrambling to prepare,” costs are expected to rise not just for the drugs themselves but also for packaging and related healthcare products. Unexpected tariff increases on countries like India (25% due to oil trade with Russia) and Switzerland (39%) show how broad trade policy actions can reach beyond targeted sectors.
Consumer and Industry Impacts
Schulz stressed that pharmaceuticals are unlike other tariff-affected industries because they directly involve life-saving medications:
“Hospitals [will have] to increase their costs. Pharmacies—you’re going to go to the pharmacy to get your prescription, and it may be multiples of what you owed before, because the taxes you pay are based on the price that the importer pays, and the importer is now going to be paying 250% more.”
With shifting trade policies and new tariffs being announced unexpectedly, Schulz emphasized the volatility:
“Sometimes you kind of have to expect the unexpected… Any country that has a surplus, we need to be looking at them and seeing if this is going to be an area where our government is going to offset that.”
The proposed 250% tariffs present a volatile and high-stakes challenge for both the pharmaceutical industry and consumers—one that demands preparation, strategic planning, and careful navigation.
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