WASHINGTON — As the Trump administration weighs new tariffs on pharmaceutical and semiconductor imports under two ongoing Section 232 investigations, the Retail Industry Leaders Association (RILA) is urging caution, warning that sweeping trade actions could backfire on American consumers.
In recently submitted comments to the Department of Commerce, Blake Harden, Vice President of International Trade for the Retail Industry Leaders Association (RILA), detailed the industry's concerns and called for a more measured, targeted approach. Harden argued that while efforts to boost domestic manufacturing are critical to national security, blunt tariff tools risk triggering harmful ripple effects across the U.S. economy, especially for working families.
“Imposing broad-based tariffs on pharmaceuticals and pharmaceutical ingredients will result in drug shortages and increased prices for Americans without delivering the kind of increased capacity the administration seeks,” Harden wrote.
“We urge the Commerce Department to take a targeted and phased approach to any measures, including tariffs, that may be imposed through this investigation to ensure that household goods continue to be available and affordable for American families.”
Harden emphasized that ramping up U.S. drug manufacturing is a long-term process that requires sustained investment, not punitive tariffs. Instead, RILA advocates for government-backed incentives, regulatory streamlining, and innovation support to strengthen the pharmaceutical supply chain without compromising affordability or access.
“We acknowledge the need for more diverse supply chains to reduce overreliance on China for legacy semiconductors, but imposing broad-based tariffs as an outgrowth of this investigation could have significant impacts on the affordability and availability of household products widely used by American families. This includes products such as home appliances, mobile phones, laptops, gaming consoles, and toys,” Harden wrote.
In parallel, RILA expressed concern over the semiconductor investigation, particularly the risk of tariffs on chips widely used in consumer products. Harden urged the Commerce Department to differentiate between semiconductors that pose actual national security risks and those that power everyday household electronics.
“To build capacity in domestic production, investment is essential and requires considerable time, significant resources, regulatory and policy flexibility, and financial incentives which doesn’t exist today. Imposing broad-based tariffs on pharmaceuticals and pharmaceutical ingredients will result in drug shortages and increased prices for Americans without delivering the kind of increased capacity the administration seeks.
“We strongly support efforts to promote national security, but it should not come at the potential cost of Americans’ lives and health. The administration can incentivize additional manufacturing of pharmaceuticals and pharmaceutical ingredients through other measures,” Harden wrote.
The comments come as retailers continue grappling with inflationary pressures, supply chain volatility, and uncertainty over trade policy. Industry leaders fear that aggressive tariff policies could reverse hard-won inventory stability and pricing gains over the past year.
