Trump announced new drug tariffs. How much will you pay at the pharmacy counter?

Core Points - President Trump announced a 100% tariff on brand name drugs imported to the U.S. starting October 1, 2025, with exemptions for companies building U.S. manufacturing plants and countries with existing trade deals [1][2] - Approximately 90% of prescriptions filled in the U.S. are for generic drugs, which may be exempt from these tariffs as the announcement specifically targets brand-name or patented drugs [2] - The pricing of brand-name drugs is influenced by patents, negotiations with insurers, and pharmacy benefit managers, leading to complex pricing structures for consumers [3][4] Industry Impact - The introduction of 100% tariffs could lead to increased drug prices, especially if combined with existing federal rebate requirements for Medicaid, which penalize drug companies for price increases above inflation [5][6] - Drug pricing in the U.S. is characterized by a mix of inflated list prices and actual costs, creating a complex environment for consumers and stakeholders [5] - If drug companies face both tariffs and higher Medicaid rebates, it may result in accelerated price increases beyond current trends [6]