Trump Imposes Tariffs of Up to 100% on Imported Medicines

US President Donald Trump has signed an executive order introducing tariffs of up to 100% on imported brand-name pharmaceutical products, unless manufacturers enter into pricing agreements or establish production facilities within the country. This was reported by pharmaphorum.

The decision follows an investigation under the so-called “Section 232,” which began a year ago, concluding that the import of medicines and active pharmaceutical ingredients has reached levels that could threaten US national security.

The announcement of the measures coincides with the anniversary of “Liberation Day,” when Trump imposed large-scale tariffs on trading partners worldwide—a move that led to geopolitical tensions, price increases, and the redirection of trade relations away from the US.

Despite the strict measures, several exemptions are provided. Generic and biosimilar medicines, as well as their active ingredients, are temporarily exempt from the tariffs for a period of 12 months. Exemptions also exist for medications of critical importance to public health, as well as for products covered by special pricing and local production agreements.

Companies that commit to building production facilities in the US by the end of Trump’s term will be able to benefit from a reduced rate of 20% for a period of four years.

A lower rate of 15% will apply to countries that have entered into trade agreements with the US over the past year, including the European Union, Switzerland, Japan, and South Korea. A zero rate has been negotiated for the United Kingdom for a period of three years as part of an agreement that also includes price increases for new medicines for the British healthcare system.

The British government stated that the country is the first in the world to secure zero tariffs for pharmaceutical exports to the US—a market worth approximately £5 billion annually.

The measure aims to force companies to negotiate with the administration. According to Reuters, about half of the pharmaceutical companies in the US have not yet entered into agreements.

Large companies have 120 days to reach an agreement before the maximum rate of 100% takes effect. For smaller firms, the deadline is 180 days, but they may be the most severely affected, as they often lack the resources to quickly build production facilities in the US.

The Alliance of Mid-Sized Biotech Companies in America warned that the new tariffs will create a two-tier system that favors large corporations and hinders smaller innovators. The organization has already taken legal action against the measures.

The tariffs are being introduced despite a US Supreme Court ruling in February, which stated that some such trade restrictions imposed under emergency circumstances are illegal. However, this ruling does not apply to industrial sectors like pharmaceuticals, which fall under the scope of “Section 232” investigations requiring more in-depth scrutiny.