Trump imposes 100% tariff on some patented drugs

The White House said Thursday that President Donald Trump is imposing a 100% tariff on patented pharmaceutical products and ingredients, expanding his tariff campaign into the drug industry.

The action was announced in an April 2 presidential order and fact sheet. AP and other outlets reported the move the same day, saying the tariff was unveiled on the first anniversary of Trump’s “Liberation Day” tariffs.

According to the White House, the tariff applies to patented pharmaceutical products and ingredients, but several categories are exempt. The administration said exclusions include orphan-designated drugs, nuclear medicines, plasma-derived therapies, fertility treatments, cell and gene therapies, antibody drug conjugates and certain medical countermeasures.

The order also leaves room for relief in some cases. Products can qualify for tariff treatment tied to trade and security frameworks or if officials determine they meet an urgent U.S. health need.

AP reported that the administration has already reached pricing deals with some major drugmakers, and companies without deals could face the higher tariff. The policy is the latest sign that Trump is using tariffs as leverage not just in trade disputes, but also in drug manufacturing and pricing negotiations.

The full impact will depend on how the exemptions are applied and which manufacturers are covered once enforcement details are worked out.