Trump threatens 100% tariffs on drugmakers who aren't building U.S. plants
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Trump says 100% tariffs on some drugmakers are coming Oct. 1, 2025. Photo: Spencer Platt/Getty Images
President Trump on Tuesday night threatened to start levying 100% tariffs on imported branded drugs made by companies that haven't committed to building new U.S. facilities by Oct. 1.
Why it matters: The move raises the stakes for drug manufacturers already under pressure from the administration to lower U.S. prices.
- Tariff threats last spring drove a surge of exports of drugs and medical products from Europe to the U.S. as manufacturers tried to build up stockpiles before duties hit.
- In August, Trump teased plans to levy a stepwise series of pharmaceutical tariffs that he said could reach 150% within a year-and-a-half, then eventually rise to 250%.
Driving the news: In a Truth Social post Tuesday night, Trump said his administration would impose a 100% tariff on any branded or patented drug starting October 1 "unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America," defining that as breaking ground or under construction.
- The president has had success exerting leverage on big pharmaceutical manufacturers, who've made a series of commitments to re-shore manufacturing lines or build entirely new facilities.
- Eli Lilly, AstraZeneca, Roche, GlaxoSmithKline and Johnson & Johnson were among the companies that have made multibillion-dollar commitments for U.S. manufacturing and research capacity.
Between the lines: The drug industry opposes such levies, and Trump exempted pharmaceutical products from the "reciprocal" tariffs he announced on all imports into the United States in April.
- But under the administration's recent trade deal with the European Union, U.S.-bound imports of branded drugs from Europe will be subject to a 15% tariff.
- Europe is one of the biggest sources of branded drugs and their ingredients for the U.S. Ireland alone accounted for about $50 billion of U.S. pharma imports last year.
- Drug manufacturers argue the administration should instead use favorable tax policies to spur activity and crack down on pharmaceutical chain middlemen they blame for driving up prices.
Drug companies continue to announce hundreds of billions in new U.S. investments, Alex Schriver, senior vice president of the industry trade group PhRMA, said in a statement late Tuesday.
- "Tariffs risk those plans because every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or the development of future treatments and cures for patients," he said.
Go deeper: A new era of Made in America drug manufacturing
This story has been updated with PhRMA comments. Tina Reed contributed.
