Key Takeaways:
The Trump administration on Thursday announced it could impose tariffs of up to 100% on drugmakers who have not agreed to pricing deals, a move aimed at lowering prescription costs in the U.S.
"Companies that do not have agreements and are not in negotiations with the administration will be subject to 100% tariffs," a person familiar with the plan said, according to a Bloomberg report.
The administration has been considering a 100% tariff on imported branded and patented medicines. Pfizer and AstraZeneca have secured multi-year tariff exemptions through pricing deals and commitments to the new TrumpRx.gov platform. Eli Lilly, Johnson & Johnson and Merck have pledged billions to expand U.S. operations to avoid penalties.
The policy is expected to pressure foreign drugmakers and U.S. importers who rely on overseas manufacturing. It could lead to increased costs for consumers and supply chain disruptions, while domestic manufacturers could see a competitive advantage. The plans are not final and could still change, and there could also be exemptions for some medicines and disease categories, the report said.
This article is for informational purposes only and does not constitute investment advice.
