Pharmaceuticals face 100% tariffs in US - unless firms strike a deal

The order does not affect generic medicines, the most commonly used in the US.

The Trump administration announced 100% tariffs on patented pharmaceuticals to lower drug prices and incentivize domestic manufacturing, with a reduced 20% tariff for companies committing to U.S. production.

President Donald Trump signed an executive order introducing tariffs of up to 100% on certain patented pharmaceuticals from companies that fail to secure pricing agreements with his administration. The order encourages drugmakers to sign 'most favored nation' deals and build facilities in the U.S. to avoid tariffs: 0% for those doing both, 20% if only constructing locally, rising to 100% in four years. Companies have 120 to 180 days to negotiate before tariffs take effect.

The Trump administration said it will impose 100% tariffs on branded pharmaceuticals imported into the United States unless manufacturers agree to government drug pricing deals or commit to making their products domestically. The move is intended to push drugmakers to onshore production and cut U.S. prescription drug prices. It offers exemptions and reduced rates through trade agreements, manufacturing commitments, and most-favored-nation pricing pacts.

Patented medicines will face a 100% tariff entering the US - but companies can still avoid the taxes by striking deals with the administration, the White House has said. US President Donald Trump ordered the long-threatened levies on Thursday. The White House said the aim of the tariffs was to reduce national security risks by boosting manufacturing of key medicines in the US. The importance of the move may be largely symbolic at this point, as it does not apply to generic medicines - the most commonly used medicines in the US. Many of the biggest drug-makers have also already struck agreements that will allow them to escape the levies, with more expected to do so in the weeks ahead.

President Donald Trump signed an executive order on Thursday that could impose long-threatened tariffs of up to 100% on certain patented drugs from companies that do not reach agreements with his administration in the coming months. Companies that have signed a 'most favoured nation' pricing deal and are actively building facilities in the US to bring production of patented pharmaceuticals and their ingredients onshore will have a 0% tariff. For those that do not have a pricing deal but are building such projects in the US, a 20% tariff will apply, rising to 100% within four years.