The Trump administration announced tariffs of up to 100% on imported branded drugs and active ingredients. This policy aims to pressure pharmaceutical companies to lower U.S. prices and increase domestic manufacturing.
Large companies face a 120-day phase-in period. Smaller firms have 180 days to comply. Companies can avoid tariffs by agreeing to "Most Favored Nation" pricing or committing to U.S. production. Generic drugs are exempt from the duties for at least one year.
Shares of major U.S. and international drugmakers declined following the announcement. Separately, President Trump fired Attorney General Pam Bondi over her handling of Jeffrey Epstein files. Deputy Attorney General Todd Blanche will serve as the acting replacement.