Trump targets drug imports with tariffs up to 100%
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President Donald Trump announced on Thursday that some imported patented pharmaceutical products and related ingredients could face tariffs of up to 100%, framing the move as a national security measure and intensifying an effort to bring drug production back to the United States.
The declaration creates a tiered system for drugmakers: Companies with onshore production plans approved by the Commerce Department could instead face a 20 percent tariff, while some companies that have pricing and production agreements with the administration could face zero tariffs for a period of time.
A senior administration official said the policy amounted to a “100% tax” on drugs produced abroad.
Trump’s statement states that the imported drugs and essential ingredients “were imported into the United States in quantities and under conditions that constitute a threat to harm the national security of the United States.”
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The move is tied to Trump’s TrumpRx initiatives, including TrumpRx.gov, which the White House said would lower prices on some expensive brand-name drugs through “Most Favored Nation” pricing agreements. (Alex Brandon/AP Images)
While Trump argues that the United States is overly dependent on foreign drug production and offers lower tariffs to companies founded in America, the move sparks a major conflict over the cost and supply of branded drugs.
According to the statement, approximately 53% of patented pharmaceutical products distributed in the United States are manufactured abroad, while only 15% of patented active pharmaceutical ingredients by volume are produced domestically.
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President Donald Trump, Administrator of the Centers for Medicare and Medicaid Services, Dr. With Mehmet Öz. (Pool / Fox News)
Under the framework, imports of patented medicines listed in Annex I will face 100% duty unless they qualify for lower rates.
Companies with approved overseas supply plans will be able to receive a 20 percent tariff instead, but this will increase to 100 percent in 2030, according to the announcement.
Officials said the administration used this structure to force companies to shift production to the United States.
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President Trump has made lowering drug prices a key priority of his administration. (Pool / Fox News)
The declaration also sets lower tariff rates for some allies: 15% for products from Japan, the European Union (EU), South Korea and Switzerland, and 10% for the United Kingdom (UK); this rate could drop to zero under a future agreement.
It also creates a zero-tariff lane for companies that both produce onshore and enter into “Most Favored Nation” pricing agreements with the administration.
Not all medications are affected. While the statement states that generic drugs will not be subject to tariffs “at this time,” US-origin drugs are also excluded.
There are broader push ties to the administration’s TrumpRx initiative, including the recently launched TrumpRx.gov platform, which the White House says gives Americans access to lower prices on some high-cost brand-name drugs through “Most Favored Nation” pricing agreements with pharmaceutical companies.
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According to the declaration, tariffs will be valid as of July 31, 2026 for some companies and as of September 29, 2026 for others.
Trump issued the order under Section 232 of the Trade Expansion Act of 1962, which allows the president to restrict imports deemed a national security threat.
