Trump Tariffs on Pharma Companies: Trump wreaks havoc on pharma companies, slaps tariffs up to 100%, rules for metal import become strict…

Trump Tariffs on Pharma Companies: US President Donald Trump has signed an executive order. Under this order, the US can impose tariffs of up to 100 percent on certain patented drugs made by pharmaceutical companies that fail to reach a “Most Favored Nation” pricing agreement with the Trump administration in the coming months.

In contrast, companies that have signed “Most Favored Nation” pricing agreements are actively setting up facilities within the US to produce patented drugs and their components domestically. No tariff will be imposed on them.

Additionally, companies that do not have any pricing agreements yet but are in the process of setting up facilities in the US to produce patented drugs and their components will face a 20 percent tariff.

However, this rate will increase to 100 percent over a period of four years. The purpose of this measure is to force pharmaceutical companies to shift their production to the US and provide medicines at lower prices directly to American consumers.

Companies have only a few months left to negotiate

According to the Associated Press, a senior Trump administration official said the companies still have a few months to negotiate before 100 percent of the tariffs are implemented. Big companies have time of 120 days, while all other companies have time of 180 days.

The official declined to name any specific companies or drugs that are currently at risk of these increased tariffs. However, the official said the administration has already finalized 17 pricing agreements with major pharmaceutical companies. Of these, 13 agreements have already been signed.

This executive order was issued on the first anniversary of the day which Trump named “Liberation Day”. On the same day, the US President had announced the imposition of huge new tariffs on imports from almost every country in the world. These “Liberation Day” tariffs were among those that were later struck down by the Supreme Court in February 2026.

What has changed regarding metal imports?

Additionally, Trump has issued an update regarding his 50 percent tariffs on imported steel, aluminum and copper. Effective from Monday, the tariff rates on these metals will be determined on the basis of their “full customs value”. The price that American customers pay when purchasing foreign metals under a new order. For most countries, the 50 percent US tariff will continue to apply to products made entirely of steel, aluminum and copper.

However, the administration is now changing the way it calculates tariffs on items or finished goods that contain metal. Now only country-specific tariffs will be applicable on products where metal content is less than 15 percent of the total weight (such as perfume bottle caps). On the contrary, products having high metal content will attract a tariff of 25 percent on the entire price of that product.