Trump administration announces new tariffs on drugmakers

The Trump administration announced 100% tariffs on patented pharmaceuticals Thursday to pressure drugmakers into lower-price deals and domestic manufacturing. Companies that commit to U.S. production face a reduced 20% tariff rate, while those making both domestic investments and entering "most-favored nation" pricing agreements will be exempt entirely. The tariffs take effect in 120 days for major companies and 180 days for smaller ones, building on 13 voluntary pricing deals already struck with drugmakers late last year. Thirteen drug companies have already made pricing deals under this threat-based approach, and the administration expects all major patented pharmaceutical companies will ultimately build manufacturing capacity in the United States. The administration also adjusted aluminum, steel, and copper tariffs to a 50% rate calculated on actual import prices rather than foreign-declared production costs, targeting what officials say was artificial cost manipulation by exporters.