US Imposes Up to 100% Tariff on Patented Drugs to Secure Lower Prices

President Donald Trump has taken a significant step to push for pharmaceutical deals by signing an executive order that could impose tariffs of up to 100% on some patented drugs. This move is part of his administration's effort to secure lower prices for medicines.

Under the executive order, companies that have signed a 'most favoured nation' pricing deal and are actively building facilities in the US will have a zero-percent tariff. For those that don't have a pricing deal but are building such projects in the US, a 20 percent tariff will apply, but it will increase to 100 percent in four years.

A senior administration official stated that companies still have months to negotiate before the 100 percent tariffs kick in. Bigger companies will have 120 days, and 180 days are offered for everyone else.

The administration has already reached 17 pricing deals with major drugmakers, 13 of which have signed. The executive order aims to address the threatened impairment of national security posed by imports of pharmaceuticals and pharmaceutical ingredients.

Critics, pharmaceutical leaders, and medical groups have warned of the consequences the new tariffs could bring, including increased costs and potential jeopardy to billions in US investments. The pharmaceutical company trade group PhRMA has expressed concerns that taxes on cutting-edge medicines will increase costs and could jeopardize investments.