Trump Signs Executive Order Threatening Up to 100% Tariffs on Pharma Companies Over Pricing

WASHINGTON (Afghan Verified) -- US President Donald Trump signed an executive order on Thursday that could impose tariffs of up to 100 percent on certain patented medicines if pharmaceutical companies fail to reach pricing agreements with his administration.

Companies that sign "most favoured nation" pricing deals and invest in US manufacturing will be exempt from the tariffs. Those developing US facilities but not signing agreements face an initial 20 percent tariff, escalating to 100 percent over four years, a senior administration official said. Large firms have 120 days to negotiate, while smaller ones get 180 days before higher tariffs take effect.

The administration has reached 17 pricing deals with major pharma companies, with 13 already signed, though specific firms and drugs were not named.

Trump stated the order addresses national security threats from US reliance on imported medicines. He has threatened tariffs on imported drugs since his second term to leverage lower prices from companies including Pfizer, Eli Lilly and Bristol Myers Squibb.

The European Union, Japan, South Korea and Switzerland face 15 percent tariffs on patented drugs, while the UK starts at 10 percent, expected to fall to zero.

Stephen J. Ubl, CEO of PhRMA, criticized the tariffs, saying they could increase costs and jeopardize US investments.

The order coincides with the first anniversary of Trump's "Liberation Day" tariffs, some of which were overturned by the Supreme Court.