US Plans 100% Tariffs on Brand-Name Drugs
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- The Trump administration plans tariffs of up to 100% on imported name-brand drugs still under patent protection, with most major drugmakers already agreeing to pricing deals and officials expecting few to pay the full rate.
- Drugmakers that commit to building US factories could see their tariff rate drop to 20%, and matching US prices to the lowest prices in other developed nations ("most favored nation" pricing) could bring tariffs to zero.
- The tariffs take effect in about 120 days for large companies and 180 days for smaller ones, giving firms a window to negotiate, and are issued under a law tied to national security.
- The European Union, Japan, South Korea, and Switzerland would face tariffs of about 15%, while the United Kingdom faces 10%; generic drugs are excluded from the plan entirely.
- PhRMA president Stephen Ubl warned that "tariffs on cutting-edge medicines will increase costs and could jeopardize billions in U.S. investments announced in the last year."
- The administration says the goal is to bring more drug manufacturing back to the US and lower prices, framing the 100% rate as leverage rather than a likely outcome.
Why it matters: Officials say most major drugmakers have already agreed to pricing deals, so few will actually pay the 100% rate—real exposure falls on holdouts, smaller companies, and countries facing the 15% baseline. The EU, Japan, South Korea, and Switzerland all sit in that 15% bucket starting in roughly 120 days, while generic drugs are excluded entirely.
