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

Donald Trump has announced a 100% tariff on patented medicines entering the United States, aiming to boost domestic drug manufacturing and reduce national security risks. However, the policy includes major exemptions generic drugs are unaffected, and pharmaceutical companies can avoid the tariffs by striking deals with the government. Firms that commit to building US manufacturing facilities by 2029 may face reduced tariffs of 20%, or even zero if they agree to pricing arrangements for public health programs like Medicaid. Many large drugmakers have already secured such agreements, suggesting the policy is designed more as leverage to push companies into negotiations than as a strict trade barrier.