President Donald Trump signed an executive order Thursday placing a 100% tariff on certain pharmaceutical products, aiming to boost domestic drug manufacturing.
What the Order Targets
The tariffs apply to patented drugs that do not follow a “most favored nations” pricing model, which would match U.S. drug prices with those in other wealthy countries.
Incentives for Drug Companies
The policy offers reduced tariffs for companies that shift operations to the U.S. or agree to pricing deals:
- Tariffs drop to 20% for companies moving production domestically
- Tariffs can be eliminated if firms also enter pricing agreements while building U.S. facilities
Large pharmaceutical companies will have a 120-day phase-in period before the tariffs take effect.
Exemptions and Reduced Rates
Some countries with existing trade agreements — including Japan and South Korea — will face lower tariffs of about 15%, according to the order.
Potential Impact
Experts warn the move could increase drug costs, lead to shortages, and slow research and development, even as it pushes for more U.S.-based production.
For the latest on Trump’s tariffs, stay tuned to Que Onda Magazine.