President Donald Trump signed an executive order Thursday imposing tariffs of up to 100 percent on certain pharmaceutical drugs, escalating pressure on companies to negotiate pricing agreements with his administration.
The order creates a tiered tariff structure based on company compliance with Trump's pharmaceutical agenda. Companies that have signed "most favoured nation" pricing deals and are actively building facilities in the United States face zero tariffs.
Those without pricing agreements but with ongoing US construction projects will face 20 percent tariffs, escalating to 100 percent within four years. Companies have limited time to negotiate — 120 days for larger firms and 180 days for smaller ones before maximum tariffs take effect.
to address the threatened impairment of the national security posed by imports of pharmaceuticals and pharmaceutical ingredients
Donald Trump, President — Executive Order
The administration has already secured 17 pricing deals with major drugmakers, with 13 companies having formally signed agreements, according to a senior administration official who briefed reporters anonymously before the order's release.
France 24 presents the tariff order as part of Trump's broader trade strategy, noting the one-year anniversary of his "Liberation Day" tariffs. The outlet emphasizes industry concerns about potential cost increases and investment risks.
Al Jazeera frames the executive order within Trump's ongoing pharmaceutical platform, highlighting the negotiation timeline and existing deals. The coverage notes the administration's use of tariff threats as leverage while presenting industry pushback.
President Donald Trump took two actions Thursday to adjust his evolving tariff regime: a 100 percent tariff on some imported drugs and adjusting his levies on industrial metals.
Trump orders new tariffs on imported drugs, adjusts industrial metals levies - The Washington Post
BOLSTERING NATIONAL SECURITY: Today, President Donald J. Trump imposed tariffs on patented pharmaceuticals and their ingredients under Section 232 of the
Fact Sheet: President Donald J. Trump Bolsters National Security and Strengthens U.S. Supply Chains by Imposing Tariffs on Patented Pharmaceutical Products – The White House
The administration announced new levies and made changes to existing tariffs for industries that have proved influential on the president’s trade policy.
Trump Revamps Metal and Pharmaceutical Tariffs - The New York Times
The timing carries symbolic weight, arriving exactly one year after Trump's "Liberation Day" — when he unveiled sweeping import taxes that sent stock markets tumbling and were later overturned by the Supreme Court in February.
Industry leaders immediately pushed back against the new measures. The pharmaceutical trade group PhRMA warned the tariffs could undermine existing US investments and increase costs for patients.
taxes on cutting-edge medicines will increase costs and could jeopardize billions in US investments
Stephen J Ubl, CEO — PhRMA
The executive order represents Trump's latest attempt to leverage trade policy for domestic pharmaceutical manufacturing. His administration has repeatedly threatened high tariffs on foreign-made drugs while simultaneously using those threats as negotiating tools.
PhRMA's Ubl emphasized that medicines imported from other countries "overwhelmingly come from reliable US allies," questioning the national security justification for the tariffs.
The order leaves critical details unresolved, including which specific companies or drugs face immediate tariff risk. The administration official declined to identify targeted firms during the briefing, maintaining leverage in ongoing negotiations.
What remains unclear is how pharmaceutical companies will balance the immediate costs of compliance against the long-term risks of escalating trade tensions with international partners.