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President Donald Trump on Thursday announced that certain prescription drugs and related supplements could face tariffs of up to 100%, framing the move as a national security measure and intensifying his push to restore drug production in the United States.
The announcement creates a tiered system for drugmakers: companies with Commerce Department-approved offshore production plans could face a 20% tax instead, while other companies that strike price and production deals with regulators could get free treatment for a period of time.
A senior administration official said the policy amounted to a “100% tariff” on drugs produced abroad.
Trump’s declaration says that medicines and essential ingredients “are being imported into the United States in such quantities and under conditions that threaten to harm the national security of the United States.”
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The move is linked to Trump’s TrumpRx program, including TrumpRx.gov, which the White House says will lower prices on some expensive brand-name drugs through “Most Favored Nation” pricing agreements. (Photos by Alex Brandon/AP)
The move sparks a major debate over the cost and supply of brand-name drugs, as Trump says the US is too dependent on foreign pharmaceuticals while offering lower tariffs to companies that make them in America.
According to the announcement, about 53% of the patented pharmaceutical products distributed in the US are manufactured abroad, while only 15% of the patented active pharmaceutical ingredients by volume are produced domestically.
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President Donald Trump and Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz. (Pool/Fox News)
Under this framework, imports of patented pharmaceuticals listed in Annex I will face a 100% tariff, unless they qualify for reduced rates.
Companies with approved onshoring programs may receive a 20% tax, although that rate rises to 100% by 2030, according to the announcement.
The administration is using that structure to pressure companies to shift production to the United States, officials said.
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President Trump has made lowering drug prices a priority of his administration. (Pool/Fox News)
The announcement also imposes lower tariffs on certain partners: 15% of products from Japan, the European Union (EU), South Korea, and Switzerland, and 10% from the United Kingdom (UK), which may drop to zero under the future agreement.
It also creates a no-fee channel for companies that produce offshore and enter into “Most Favored” pricing agreements with management.
Not all drugs are affected. The announcement says generic drugs will not be subject to the charges “at this time,” and US drugs are also excluded.
The TrumpRx administration’s extensive partnership, including the recently launched TrumpRx.gov platform, which the White House says gives Americans access to lower prices for some expensive brand-name drugs through “Most Favored Nation” pricing agreements with drug companies.
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The tariffs will take effect on July 31, 2026, for some companies and September 29, 2026, for others, according to the announcement.
Trump issued the order under Section 232 of the Trade Expansion Act of 1962, which allows the president to restrict imports deemed to be a national security threat.
