President Donald Trump on Thursday announced a plan to impose tariffs of up to 100% on some imported patented pharmaceuticals and related ingredients. The move frames the tariffs as a national security measure and part of an effort to bring drug manufacturing back to the United States, according to a proclamation from the White House.
The proclamation establishes a tiered tariff system. Companies with approved onshoring plans from the Commerce Department could face a 20% tariff. Some firms that strike pricing and manufacturing agreements with the administration could receive zero tariffs for a limited time. A senior administration official described the policy as a “100% tax” on drugs produced abroad.
Trump’s proclamation states that imported pharmaceuticals and key ingredients are being brought into the U.S. in quantities that threaten national security. About 53% of patented pharmaceutical products distributed in the U.S. are produced overseas, while only 15% of active pharmaceutical ingredients are made domestically, according to the proclamation.
The plan targets imported patented drugs listed in Annex I, which will face a 100% tariff unless they qualify for lower rates. Companies with approved plans to onshore production could pay a 20% tariff, rising to 100% in 2030. The administration aims to incentivize companies to move production to the U.S., officials said.
Tariff rates are lower for certain allies: 15% for products from Japan, the European Union, South Korea, and Switzerland, and 10% for the United Kingdom, which could fall to zero under future agreements. The proclamation also creates a zero-tariff pathway for companies that both onshore production and enter “Most-Favored-Nation” pricing agreements with the government. Not all drugs are affected; generic pharmaceuticals and drugs of U.S. origin are excluded at this time.
The tariffs are part of the broader TrumpRx initiative, including a recently launched platform aimed at providing Americans access to lower prices on some high-cost brand-name drugs through special pricing agreements. The tariffs will take effect starting July 31, 2026, for some companies and Sept. 29, 2026, for others, according to the proclamation. Trump issued the order under Section 232 of the Trade Expansion Act of 1962, which allows the president to restrict imports deemed a national security threat.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
