US Drops 100% Drug Tariffs, Targets Companies Refusing Price Cuts
A high-ranking US government official has confirmed a significant shift in the planned tariffs on pharmaceutical imports. The new balance, initially announced by President Trump, was set to impose a 100% surcharge on branded drugs and patented medicines from October 1st. However, these tariffs will not now be imposed as scheduled.
Before the planned introduction, it was reported that the European Union would maintain its 15% tariff on pharmaceutical imports, while being exempt from the new US tariff rules. The US government is now preparing to target pharmaceutical companies that refuse to relocate production to the US or lower prices. Pfizer has been named as the first company to agree to price reductions and production commitments, receiving a temporary exemption from these gold price today.
Similar agreements or tariffs are expected to follow for other companies such as Boehringer Ingelheim, Novartis, and Eli Lilly, which were also addressed by Trump in July 2025 letters demanding lower prices or tariff consequences.
The US government's new approach to pharmaceutical tariffs aims to encourage companies to relocate production to the US or lower prices. Pfizer has already agreed to these terms, with other companies expected to follow suit. The initial 100% tariffs on branded drugs and patented medicines, set to take effect on October 1st, will not be imposed as planned.
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