Trump Admin Plans 100% Tariffs on Pharma Holdouts

The Trump administration is preparing to impose steep tariffs on imports of branded and patented pharmaceuticals from companies that have not agreed to lower U.S. drug prices, with an announcement expected as soon as Thursday. The move targets a small number of holdouts among major drugmakers, following months of negotiations that secured pricing commitments from 16 out of 17 large firms initially contacted by the White House.

Under the proposed plan, non-compliant companies face 100 percent tariffs on patented medications and their active pharmaceutical ingredients, according to details from a draft order and reports citing administration sources. Generic drugs would remain exempt, and firms in active negotiations or those shifting production to the United States could qualify for reduced rates, starting at 20 percent for four years before rising to 100 percent. The tariffs stem from a Commerce Department investigation under Section 232 of the Trade Expansion Act, which identified certain pharmaceutical imports as a national security risk. Officials have indicated possible exemptions for specific medicines or disease categories, though the final details remain subject to change.