U.S. President Donald Trump's threat to impose 100% tariffs on branded drugs ratcheted up pressure on pharmaceutical companies to agree price cuts and shift manufacturing after talks faltered earlier this year, industry lobbyists and executives said. ...

President Donald Trump's proposed 100% tariffs on foreign pharmaceuticals will ultimately be paid by American patients and insurers, not foreign drug companies, according to economist Justin Wolfers.He argues the administration’s theory that tariffs will force price cuts is flawed, especially for patented, brand-name drugs where there is no competition and demand is inelastic.Economist Warns Of Higher Drug Costs For ConsumersWolfers explained that for these unique medications, the economic leverage lies ent ...

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]