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Trump Unveils 100% Tariff on Some Patented Drugs on 'Liberation Day' Anniversary
The new executive order aims to lower drug prices through tariffs on pharmaceutical companies that don't reach pricing deals with the administration.
Apr. 2, 2026 at 10:41pm
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The Trump administration's new tariffs on patented drugs aim to lower prices, but could also disrupt the pharmaceutical supply chain.NYC TodayPresident Donald Trump has signed an executive order that could impose tariffs of up to 100% on some patented drugs from pharmaceutical companies that don't reach pricing deals with his administration in the coming months. The order is part of Trump's ongoing efforts to lower drug prices and bring more drug manufacturing to the U.S.
Why it matters
The new tariffs are the latest escalation in Trump's long-running battle with the pharmaceutical industry over drug prices. While the administration says the tariffs are necessary to address national security concerns over drug supply chains, critics warn they could lead to higher costs for consumers and jeopardize investments in the U.S. biopharmaceutical sector.
The details
The executive order establishes a tiered tariff system. Companies that have signed a 'most favored nation' pricing deal and are actively building facilities in the U.S. to onshore production will have a 0% tariff. For those without a pricing deal but building U.S. facilities, a 20% tariff will apply, increasing to 100% in four years. The administration says companies have 120-180 days to negotiate pricing deals before the 100% tariffs kick in.
- The executive order was signed on April 2, 2026, the first anniversary of Trump's so-called 'Liberation Day' when he unveiled sweeping new import taxes.
- The 100% tariffs will take effect in 120-180 days for companies that don't reach pricing deals with the administration.
The players
Donald Trump
The President of the United States who signed the executive order imposing the new pharmaceutical tariffs.
Stephen J. Ubl
The CEO of the Pharmaceutical Research and Manufacturers of America (PhRMA), a trade group that criticized the tariffs.
What they’re saying
“Taxes 'on cutting-edge medicines will increase costs and could jeopardize billions in U.S. investments.'”
— Stephen J. Ubl, CEO, Pharmaceutical Research and Manufacturers of America (PhRMA)
What’s next
The administration says companies have 120-180 days to negotiate pricing deals with the government before the 100% tariffs take effect.
The takeaway
The new pharmaceutical tariffs are the latest escalation in Trump's ongoing battle with the drug industry over high prices. While the administration says the tariffs are necessary for national security, critics warn they could lead to higher costs for consumers and undermine investment in the U.S. biopharmaceutical sector.
