Summary
President Donald Trump signed an order to impose up to 100 percent tariffs on some drugs if pharmaceutical companies do not make pricing deals with the U.S. government. Companies that agree to U.S. based pricing or build facilities in the U.S. will face lower tariffs. The aim is to reduce drug costs and enhance national security concerning drug imports.
Key Facts
- President Trump signed an executive order potentially imposing tariffs on some drugs.
- The tariffs could reach up to 100 percent on certain patented drugs.
- Companies with "most favoured nation" pricing deals and U.S. facilities avoid tariffs.
- A 20 percent tariff applies to companies building U.S. facilities without a pricing deal, increasing to 100 percent in four years.
- Companies have several months to negotiate pricing deals before tariffs increase.
- The order aims to address national security issues linked to drug imports.
- The executive order aligns with past actions for reducing drug import duties.
- Some countries have agreements with the U.S. to limit drug tariffs, including the EU, Japan, Korea, and Switzerland.
