Trump Threatens 100% Tariff on US Drugmakers Over Prices

In a bold move aimed at reining in pharmaceutical prices, President Trump has threatened to impose a 100% tariff on US drug manufacturers that fail to strike deals to lower drug costs for American consumers. This unprecedented action is part of the administration's ongoing efforts to address the long-standing issue of high prescription drug prices in the United States.

The new tariff will specifically target branded drugs and their active ingredients, while generic drugs, which make up over 90% of medicines sold in the US, will be exempt from the tariffs for at least one year. Additionally, orphan drugs, veterinary medicines, and other specialty drugs will be exempt if they are from trade deal countries or meet critical public health needs.

This bold move by the Trump administration represents a significant escalation in the ongoing battle to lower pharmaceutical prices in the United States. The president has long been critical of the industry, accusing drug companies of "getting away with murder" and vowing to take action to address the issue.

Analysts suggest that the threat of a 100% tariff could force pharmaceutical companies to the negotiating table, potentially leading to price concessions and deals that would ultimately benefit American consumers. However, the industry has historically been resistant to government intervention and may push back against these measures.

The exemption for generic drugs is a strategic move, as these lower-cost alternatives have been a key focus of the administration's efforts to increase competition and drive down prices. By targeting primarily branded drugs and their ingredients, the tariffs aim to incentivize pharmaceutical companies to prioritize developing and marketing more affordable generic options.

The potential impact of these tariffs on the pharmaceutical industry and the broader healthcare landscape remains to be seen. As the administration continues to explore ways to address the issue of drug pricing, this latest move is sure to generate significant debate and controversy in the coming months.