The Trump administration is reportedly set to introduce 100% tariffs on certain medicines in an effort to push pharmaceutical companies to boost manufacturing in the United States. The measure would target firms that have not reached agreements with the White House, as reported by the Financial Times.
The proposed tariffs reflect promises made by Trump last year, when he warned he would impose 100% duties on imported branded or patented medicines unless the producers establish U.S. facilities. According to sources, imports from nations that have negotiated trade agreements with the White House would face capped tariffs, in accordance with the terms of those deals.
Last year, the United States agreed to limit tariffs on pharmaceuticals from the European Union to 15% as part of an accord reached with the bloc in Turnberry, Scotland. The UK also secured a separate deal with Washington, reducing tariffs on its medicines for three years in return for increased NHS spending on pharmaceuticals.
Pfizer, AstraZeneca, and Novo Nordisk are among the pharmaceutical firms that have reached agreements with the Trump administration to increase investment in U.S. operations and reduce drug prices, securing exemption from tariffs.
The new tariffs set to be declared this week stem from a national security probe under Section 232 of the Trade Expansion Act of 1962, initiated in April of last year.
Tariffs imposed through those investigations were unaffected by the Supreme Court’s February decision that overturned Trump’s broad use of emergency powers to levy duties.
Since then, the White House has initiated new investigations under separate legal authorities to reinstate the previous tariff measures.
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