The Trump administration announced Thursday it will impose 100% tariffs on patented pharmaceuticals to pressure companies into lowering drug prices and moving manufacturing to America. The tariffs take effect in 120 days for large companies and 180 days for smaller ones, targeting major pharmaceutical manufacturing hubs including China, Singapore and India.
The tariff threat has already proven effective as leverage, helping drive 13 drug companies to strike "most-favored nation" pricing deals with the White House late last year. The administration is using trade policy as a tool to reshape both drug pricing and domestic manufacturing in the pharmaceutical sector.