Trump unveils 100-percent tariff on drugs to push for pharmaceutical deals

President Trump signed an executive order threatening tariffs of up to 100% on certain patented drugs if pharmaceutical companies don't negotiate pricing deals with his administration. The order aims to lower drug costs by incentivizing companies to agree to "most favored nation" pricing and build facilities in the US. Companies that sign deals and build facilities will face no tariffs, while those building facilities without a deal will initially face a 20% tariff, increasing to 100% in four years. The administration has already reached pricing agreements with several major drugmakers. The order, justified by Trump as necessary for national security, arrives a year after similar tariffs were overturned by the Supreme Court, and has drawn criticism from pharmaceutical leaders and medical groups.

On March 31, 2026, President Trump signed an executive order imposing tariffs on some patented drugs, potentially reaching 100% for companies without pricing deals with the administration. Companies with "most favored nation" pricing deals and those building U.S. production facilities will receive lower or no tariffs. The administration stated the tariffs aim to address national security concerns related to pharmaceutical imports. Companies have several months to negotiate before the highest tariffs are implemented. Pharmaceutical trade groups, like PhRMA, warn the tariffs could increase costs and jeopardize U.S. investments, noting that most imported medicines come from U.S. allies. This action occurred on the anniversary of Trump's "Liberation Day," when previous tariffs were introduced.