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U.S. Sets Drug Tariffs Up to 100% With Lower Caps for Allies

The White House says the step protects drug supplies by steering production home.

Overview

  • The administration, which issued the order Thursday, said patented drugs and key ingredients will face tariffs of up to 100% after a 120‑day phase‑in for large firms and 180 days for smaller ones to address supply risks tied to national security.
  • Imports from the European Union, Japan, South Korea, Switzerland and Liechtenstein will face a 15% cap, while the United Kingdom secured a special lower rate under a separate arrangement.
  • Companies that build out U.S. production will face a 20% rate that can rise to 100% over four years if they miss commitments, and firms that join most‑favored‑nation pricing deals can receive tariff waivers.
  • The White House says it has 17 company agreements, with 13 signed so far, and it is excluding generic medicines for now with a review promised within a year.
  • In a linked move on metals, the President kept a 50% tariff on primary steel, aluminum and copper but shifted the calculation to the price paid by U.S. buyers and set 25% for goods with substantial metal content, drawing pushback from European industry.