Trump's big stick of drug tariffs will fall! Drug companies that have not signed low-price agreements may face a 100% tax.

According to reports cited by the media and sources, the Trump administration is set to announce on local time Thursday, imposing hefty tariffs on pharmaceutical companies that have not reached agreements to maintain low drug prices in the US market. This is the latest measure taken by the administration to impose tariffs on imported goods under the guise of national security. Sources reveal that companies without agreements and without negotiations with the government will face 100% tariffs. US President Donald Trump has been threatening for the past year to impose significant tariffs on the global pharmaceutical industry, with rates potentially ranging from 100% to 200%, in order to force pharmaceutical companies to relocate production lines back to the US and lower drug prices for American patients. Most multinational pharmaceutical companies, including Pfizer and Eli Lilly, have reached agreements with the White House to exempt them from such tariffs for up to three years. Most large pharmaceutical companies, including Pfizer and Eli Lilly, have reached some form of agreement with the White House through price reductions, participation in TrumpRx.gov, or expanding US manufacturing to exempt them from tariffs. Pfizer and AstraZeneca have been described as having secured years of tariff exemptions through pricing agreements and commitments to TrumpRx.gov, while Lilly, Johnson & Johnson, and Merck have reportedly committed to investing billions of dollars in expanding US production to avoid punishment. In practice, when it is said that they have reached an agreement with the White House, it may include various arrangements: direct price reduction agreements, joining the TrumpRx platform, increasing US manufacturing investment, or a combination of these measures. These new tariff laws are based on an investigation initiated under Section 232 of the Trade Expansion Act by the White House. Sources say that companies that have not reached any agreements and have not negotiated directly with the Trump government will face 100% tariffs. These sources requested anonymity as the discussions have not yet been made public. Since September 30, 2025, the Trump administration has announced agreements with 16 large multinational pharmaceutical companies to push US drug prices closer to the lower levels in other developed countries. Sources say these plans are not yet finalized and there may still be some changes at the details level. They also suggest that certain rare drugs and special medications covering certain disease categories may also receive exemptions. The White House did not immediately respond to requests for comment. Since Trump began rolling out his tariff agenda, he has been talking about the issue of drug supply in the US market, and in exchange for tariff exemptions promises, he has sought significant concessions from pharmaceutical companies on domestic manufacturing and drug costs in the US. The industry was not previously included in his radical reciprocal tariff policy implemented in 2025; these tariffs were overturned by the US Supreme Court in February this year. However, the Trump administration chose to bypass the US Congress process, imposing a 15% tariff on imported goods under the guise of "temporary substitute measures" to try to make up for the gap in tariff policy previously ruled illegal by the Supreme Court. Just hours after the US Supreme Court overturned the Trump administration's massive tariff measures under the International Emergency Economic Powers Act (IEEPA), Trump signed an executive order announcing the imposition of a new 15% tariff on imported goods under Section 122 of the Trade Act of 1974, also known as the "Balance of Payments Adjustment Provision", but with a validity period not exceeding 150 days.