Trump unveils 100% tariff that could hit some patented drugs this year

Key Points:

• President Donald Trump signed an executive order imposing potential tariffs of up to 100% on patented pharmaceuticals from companies that fail to reach pricing or onshoring agreements with the U.S. government, with phased tariff rates depending on company compliance.
• Companies that have signed "most favored nation" pricing deals and are building U.S. production facilities face no tariffs, while others face 20% tariffs initially, rising to 100% after four years if no deal is reached; companies have 120 to 180 days to negotiate.
• The order cites national security concerns related to pharmaceutical imports and coincides with the first anniversary of Trump's "Liberation Day" tariffs, some of which were overturned by the Supreme Court earlier this year.
• Industry groups, like PhRMA, warn that these tariffs could increase costs and jeopardize U.S. investments in biopharmaceutical manufacturing, noting that many imported medicines come from reliable U.S. allies.
• Additionally, Trump updated tariffs on imported steel, aluminum, and copper, maintaining 50% tariffs on pure metals while adjusting rates on finished goods with metal content, signaling ongoing use of sector-specific import taxes despite recent legal challenges.