Trump Warns Pharma Firms of 5-8% Extra Tariffs Ahead of October Drug Pricing Deadline
New Delhi: US President Donald Trump has issued a stern warning to pharmaceutical companies, cautioning that an additional 5-8% tariff will be levied on drugmakers if they fail to strike agreements with his administration. The warning follows his earlier declaration of imposing a 100% tariff on all patented drug imports starting October 1, 2025, unless companies comply.
According to a recent media report in NDTV Profit, the move comes as the White House intensifies pressure on the pharmaceutical industry to enter into pricing and manufacturing pacts that align with its “most-favoured-nation” style policy. The administration has maintained that the strategy is aimed at ensuring American patients no longer pay disproportionately higher prices for medicines compared to other countries.
The announcement closely trails the landmark deal with Pfizer, where the company agreed to lower the price of drugs supplied under the Medicaid programme, while also committing nearly $70 billion towards research, development, and domestic manufacturing investments. In exchange, Pfizer has been granted a three-year waiver from the new 100% tariff.
Notably, under the pact, Pfizer will make select products available on the federal “TrumpRx” portal at an average 50% discount for direct-to-consumer purchases, a move expected to reshape market dynamics. The administration has emphasised that such agreements are intended to end the long-standing practice of Americans “subsidising” cheaper drug prices abroad, thereby enforcing fairness in global pharma pricing.
However, critical questions remain on how extensively the 5–8% tariffs will be applied, how many companies will sign similar agreements, and what the broader impact will be on global trade, industry supply chains, and domestic drug availability. The pharmaceutical sector, policymakers, and patients alike are awaiting clarity as the October deadline looms.
NDTV Profit reports that the development marks a significant escalation in the Trump administration’s drug-pricing agenda, signalling that pharma companies may face serious financial repercussions unless they align with federal terms.
