After months of threats, President Trump issued major tariffs on pharmaceutical products.

According to a statement posted on the White House’s website,¹ patented pharmaceutical products and ingredients are subject to 100% tariffs. As has been the case with previous tariffs, there are a variety of contingencies and exemptions.

What are the exact details of the latest pharmaceutical tariff order?

The tariffs will do into effect in 120 days for larger pharmaceutical companies, while smaller ones face a 180-day window. However, products imported from the following countries or regions will only face a 15% tariff (due to previously negotiated deals):

• European Union
• Japan
• Korea
• Switzerland
• Liechenstein

Also, a lower tariff will apply to product from the United Kingdom.

Most importantly, pharmaceutical companies that negotiated agreements with the Trump administration for its Most Favored Nation initiative will face a 0% tariff until January 20, 2029. Companies that enter into onshoring agreements will avoid the 100% tariffs, but will be hit with 20% tariffs instead.

The following drug categories are exempt from these tariffs:

• Orphan drugs
• Drugs for animal health
• Certain specialty pharmaceutical products

An unnamed administration official spoke with CNBC,² saying that the reason for the tariffs is to protect and secure the drug supply while also ensuring that it becomes a domestic supply.

This is the latest example of the President using tariffs to push his various agendas. Primarily, he has taken action to bring production back to the United States against various industries. While previous tariffs have exempted pharmaceuticals, he has previously warned that pharmaceutical tariffs would be incoming.

The President is also using tariffs as a way to push pharmaceutical companies to provide the United States with MFN pricing. Last year, he issued an executive order demanding that pharma companies set US prices either equal-to or lower-than the best international prices in comparative markets. A few months after that, he issued direct threats to specific pharma companies to begin negotiating with his administration.

Following that, major pharma companies began announcing deals with the administration, although the details of those deals remain undisclosed to the public.

Experts have repeatedly weighed in on the impact of both MFN pricing and tariffs.

In a piece written for Pharmaceutical Executive, Anais Frappe, Mark Kohler, and Daniel Shapiro wrote, “The introduction of the MFN––if fully implemented––is expected to significantly reshape launch strategies in MFN-referenced markets, and drug launches in these markets are at risk of experiencing delays. Conventional launch sequence has traditionally begun with U.S. launches before quickly turning to European and other key markets, many of which are MFN-referenced. However, if countries with low prices within the MFN basket are launched into early, they may set a low MFN price benchmark that significantly erodes U.S. margins. Thus, pharmaceutical companies may aim to delay or even bypass these markets.”

In an interview with Pharmaceutical Executive, ADVI’s head of market access policy strategy Lindsay Bealor Greenleaf said, “The fallout from these policies lies squarely on the concerns around innovation and drugs launching in the future. There were some projections back in 2020, when the Trump led CMS proposed doing a MFN policy just for Medicare, Part B drugs. There was an American Action Forum projection back then that said just focusing on Part B with MFN pricing would result in 60 fewer drugs to launch over the next decade. That's just the Part B drugs.”

Sources

1. Fact Sheet: President Donald J. Trump Bolsters National Security and Strengthens U.S. Supply Chains by Imposing Tariffs on Patented Pharmaceutical Products. FDA. April 2, 2026. https://www.whitehouse.gov/fact-sheets/2026/04/fact-sheet-president-donald-j-trump-bolsters-national-security-and-strengthens-u-s-supply-chains-by-imposing-tariffs-on-patented-pharmaceutical-products/
2. Trump administration sets up to 100% tariffs on some imported drugs, with many companies exempt. CNBC. April 2, 2026. https://www.cnbc.com/2026/04/02/trump-pharmaceutical-tariffs-100percent.html