Trump Administration Prepares Up To 100% Pharma Tariffs On Drugs From Companies That Have Not Struck A Deal Yet: Report

• Pharmaceutical companies from the European Union, Japan, South Korea, Switzerland, and the U.K. will be subject to separate tariff rates under the bilateral deals they have entered into with the U.S.
• Earlier, a Bloomberg report said the Trump administration could announce new pharma tariffs as early as Thursday.
• The report stated that there may be exemptions for drugs used to treat certain diseases.

The Trump administration is reportedly preparing to impose tariffs of up to 100% on drugs from pharmaceutical companies that have not yet struck deals with the White House.

According to a CNBC report, the new tariffs will be imposed on both branded drugs and their active ingredients. However, companies can avoid these tariffs if they move their manufacturing to the U.S. or are currently negotiating a deal with the Trump administration.

The VanEck Pharmaceutical ETF (PPH) and the iShares U.S. Pharmaceuticals ETF (IHE) were both down about 1% at the time of writing.

Generic Drugs To Escape Additional Tariffs, Says Report

The report added that generic drugs will not be subject to any additional tariffs.

Pharmaceutical companies from the European Union, Japan, South Korea, Switzerland, and the U.K. will be subject to separate tariff rates under the bilateral deals they have entered into with the U.S., the report stated.

Earlier, a Bloomberg report said the Trump administration could announce new pharma tariffs as early as Thursday. The report added that there may be exemptions for drugs used to treat certain diseases. President Trump is scheduled to sign executive orders at 2 p.m. ET on Thursday, but it is not yet known what those orders will be.

The report added that these tariffs result from an investigation under Section 232 of the Trade Expansion Act. This rule addresses imports of a product that threatens the national security of the U.S.

Several Major Pharma Companies Have Struck Deals Already

Several major pharmaceutical companies struck deals with the Trump administration in 2025 to lower the prices of their new and existing drugs in the U.S.

This includes giants such as Eli Lilly & Co. (LLY), Novo Nordisk A/S (NVO), Pfizer Inc. (PFE), and GSK Plc. (GSK), and Merck & Co. Inc. (MRK), among others.

“As of today, 14 out of the 17 largest pharmaceutical companies… but they've all agreed… have now agreed to drastically lower drug prices for their American patients… for the American people and patients,” President Trump said, while announcing the deals in December 2025.

In October 2025, President Trump said Pfizer would adopt most-favored-nation pricing for all new drugs launched in the U.S. The company launched its medicines on the TrumpRx portal in February 2026.

In November 2025, Eli Lilly and Novo Nordisk struck an agreement with the Trump administration to cut prices on select upcoming pills and existing obesity drugs. Eli Lilly’s Zepbound, Novo Nordisk’s Ozempic, and Wegovy are available on the TrumpRx portal.

Meanwhile, U.S. equities declined in Thursday morning’s trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.22%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.34%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘extremely bearish’ territory.

Also See: OWL Stock Sinks After Blue Owl Reportedly Blocks Nearly $4.2B In Redemptions

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