Pharmaceuticals face 100% tariffs in US – unless firms strike a deal

5 hours ago

The US has imposed a 100% tariff on patented medicines entering the country, though companies can avoid these tariffs by striking deals with the administration. The goal is to encourage pharmaceutical manufacturing in the US and reduce national security risks.
Many large drug-makers already have agreements to escape the tariffs, with smaller firms having 180 days to negotiate. Companies committing to new US manufacturing before January 2029 face a reduced 20% tariff, which can drop to zero with pricing deals.
The US will honor lower tariffs from deals with partners like Europe, the UK, and Japan. The UK-US agreement keeps tariffs at zero for UK pharmaceuticals in exchange for higher NHS medicine prices, benefiting British patients and businesses.
Experts note that the impact is uncertain due to exemptions and deal details. While tariffs have spurred $400bn in promised US investments, the lower rates expire after Trump's term in 2029. Steel, aluminium, and copper tariffs are also being adjusted.

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