Trump's 100% tariffs on some drugmakers take effect Tuesday

September 29, 2026 at 02:00 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

President Donald Trump's order to levy 100% tariffs on certain patented pharmaceutical products and ingredients takes effect on Tuesday. The tariffs target a small share of drugmakers, with larger companies holding Most Favored Nation agreements largely exempt. Experts warn the move could force small and midsize firms to close or merge, potentially reducing medicine supply and raising prices.

Key Facts

The tariffs take effect on Tuesday, September 30, 2026.
Patented pharmaceutical products from the EU, Switzerland, Japan, and South Korea face a 15% tariff rate.
More than 100 drugmakers make at least one drug that is not exempt, according to a Brookings Institution preliminary analysis.
Companies with an agreement to produce more in the US face a 20% tariff.
Generic medications, orphan drugs, and certain specialty medicines are largely exempt.

Tariff Scope and Exemptions

The 100% tariff applies to a small share of pharmaceutical manufacturers and their products. Larger pharma companies that signed Most Favored Nation agreements are exempt from the 100% levy. These companies have promised to increase domestic production and provide lower prices to Medicaid and TrumpRx. Generic medications, orphan drugs for rare diseases, and certain specialty medicines are largely exempt. Patented pharmaceutical products from the EU, Switzerland, Japan, and South Korea face a 15% tariff rate, while those from the UK are not subject to the levies.

Impact on Smaller Drugmakers

More than 100 drugmakers make at least one drug that is not exempt, according to a preliminary analysis from the Brookings Institution. A majority of these companies do not have any production facilities and instead use contract manufacturers. Experts say the tariffs could force these drugmakers to close or merge with larger rivals. This could reduce the number of medications they provide to patients and lead to higher prices. The tariffs could also dampen the discovery of new medicines since smaller firms tend to be more innovative.