US President Trump signed an executive order imposing 100% tariffs on patented pharmaceuticals made abroad unless companies commit to building US plants or secure trade deals124.
Large companies have 120 days and smaller ones 180 days to submit reshoring plans, facing 20% tariffs if committed; completion required by end of Trump's term1.
Exemptions include EU, Japan, South Korea, Switzerland (15% duty), UK (tariff-free for 3 years), and companies with Most Favored Nation pricing deals plus US plants (0% tariff)13.
Generic drugs are not subject to these tariffs, with reassessment in one year1.
Order announced Thursday, April 3, 2026, alongside metal tariff reforms; officials claim no impact on consumer drug prices1.
Sources:
1. https://www.ndtv.com/world-news/donald-trump-imposes-100-tariffs-on-foreign-made-drugs-reshapes-metal-duties-11304735
2. https://www.statnews.com/2026/04/01/trump-section-232-tariffs-imported-brand-drugs/
3. https://www.youtube.com/watch?v=iBiMGAlHK5Y
4. https://www.fiercepharma.com/pharma/trump-slaps-100-duties-imported-drugs-there-are-plenty-exceptions