Trump administration plans 100% tariffs on imported drugs to lower US prices: Report

The Trump administration is preparing to impose new tariffs of up to 100% on imported branded drugs from pharmaceutical companies that have not agreed to lower their US drug prices as part of the president's “Most Favored Nation” (MFN) pricing initiative. The proposal, though still in draft form, could significantly impact the cost of pharmaceuticals in the US. 

According to a draft obtained by CNBC, the proposed tariffs could reach up to 100% on patented medications and their active ingredients. The tariffs are part of President Trump's broader trade and pricing strategies, which aim to address pharmaceutical pricing issues and leverage trade policy to enforce price reductions.

Targeting patented drugs 

The proposed tariffs would specifically apply to patented medications and active ingredients imported into the US from pharmaceutical companies that have not negotiated pricing deals with the administration. These high tariffs would effectively double the cost of affected drugs unless companies meet certain conditions. 

Opportunities to avoid tariffs 

There are potential pathways for pharmaceutical companies to avoid the tariffs. These include: 

• Negotiating deals with the Trump administration to sell drugs at lower prices. 
• Moving production to the US, which could exempt them from the tariffs. 

These provisions are part of Trump’s broader effort to lower drug prices through direct negotiations with pharmaceutical companies. 

When will the tariffs be announced? 

While the draft of the order is not final, the administration is expected to announce the tariffs soon. It remains unclear whether certain types of drugs will be exempted from the tariffs. 

The imposition of 100% tariffs would mark a significant escalation in Trump’s trade policy, especially with respect to the pharmaceutical industry. Though the goal is to lower drug prices, concerns are rising within the GOP that the tariffs could lead to higher prices for American consumers in the short term, undermining Trump’s stated objective of reducing healthcare costs. 

Background on the Proposal 

The tariff proposal is part of a larger strategy to address the pricing of drugs in the US. In the spring of 2025, the Trump administration launched a Section 232 investigation into the pharmaceutical industry, using it as leverage for trade negotiations and MFN deals with drug companies. While the pharmaceutical sector was exempted from the first wave of tariffs, it now appears to be in the administration’s crosshairs. 

As part of Trump’s broader approach to healthcare, the Most Favored Nation pricing initiative aims to ensure US consumers pay the same or lower prices for drugs compared to other countries with more affordable healthcare systems. The administration has already reached agreements with several drug companies to sell medications directly to consumers at lower prices, and the new tariffs are seen as an extension of these efforts.