Uncertainty Surrounding Pharma Tariff Deadlines

In April of this year, President Trump announced plans to impose 100% tariffs on branded pharmaceutical imports. At the time, he set a deadline of July 31, 2026, for major pharmaceutical companies to negotiate onshoring agreements (which would reduce the tariffs to 20%).

Also, companies that negotiated deals with the administration as part of the President’s MFN initiative would be exempt from these tariffs. Further complicating the issue, regions with previously negotiated tariff deals would also be exempt from 100% tariffs on pharma imports.

This move is part of the President’s plans to strengthen domestic manufacturing and reduce the United States’ reliance on imports.

Pharmaceutical Executive spoke with Ryan Last, a senior associate at Troutman Pepper Locke, about the situation pharmaceutical and biotech companies face with just one month remaining before the initial deadline hits. While previous deadlines have passed by, pharma companies still have time to prepare and make plans, while also bracing for the larger impact that these tariffs may have.

Pharmaceutical Executive: How are pharma and biotech companies handling uncertainty surrounding tariffs?
Ryan Last: The larger companies are definitely going to have more to say. This isn't the last word on it. I don't think this is where it ends. We're going to see the market react to this as we get closer to the launch date.

And as we've seen in the automobile industry under Section 232, where changes resulted in how automobile and steel tariffs were imposed, we'll likely see a similar shift in how this is implemented after the first few months. I don't know if the impact has fully set in yet.