Drugmakers and analysts fear retaliation from Brussels will only exacerbate Europe’s drug supply issues. After raising tariffs on steel and aluminum, U.S. President Donald Trump had a clear message for the pharmaceutical industry — you’re next.

Kotak Institutional Equities analysed the base and worst case scenarios in the event of the tariff hike by the US on the pharmaceuticals industry. Donald Trump had disclosed that a 25 per cent tariff will be implemented on pharmaceuticals in the initial phase and it will surge ‘very substantially over a year’.

President Donald Trump said on Tuesday that he plans to impose tariffs of around 25% on auto imports as well as semiconductors and pharmaceuticals shipped to the United States as early as April 2.

The new plants will be built over the next five years, and are expected to create more than 3,000 jobs for skilled workers.

It comes as companies work to build goodwill with Trump, who has emphasized reshoring manufacturing to the U.S. and reducing reliance on foreign supply chains.

Eli Lilly said Wednesday it will invest $27 billion to build four new manufacturing plants in the United States as the pharmaceutical giant grapples with the threat of drug import duties from the Trump administration.