economy
Trump threatens 100% tariff on US drug makers that don’t strike deals to lower prices
New tax will hit branded drugs and active ingredients while exempting generics for at least one year
TL;DR
- Donald Trump is threatening 100% tariffs on pharmaceutical companies failing to strike deals to lower U.S. drug prices.
- Tariffs will apply to branded drugs and active ingredients, exempting generics for at least one year.
- Companies agreeing to pricing deals and onshore production will be exempt.
- Firms planning to increase domestic manufacturing will see a 20% tariff, rising to 100% in four years.
- Seventeen drugmakers have already received exemptions, including Pfizer and Eli Lilly.
- Industry groups express concern that the policy creates an unfair system favoring large companies.
- The move is part of Trump's broader effort to lower prescription drug costs, which are significantly higher in the U.S. compared to other developed nations.
- This policy comes amid consumer pressure to lower living costs and high gas prices.