For many individuals relying on critical prescription drugs—including those for weight loss, asthma, and cancer—the recent announcement by President Donald Trump regarding a 100% tariff on foreign brand-name medications has left them in a state of uncertainty. In a post on Truth Social, Trump declared, “Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America.” He added that “IS BUILDING” will be defined as either “breaking ground” or “under construction,” indicating that products manufactured at such sites would be exempt from the tariffs.
Experts in the pharmaceutical field have pointed out that Trump's announcement raises several critical questions. Here are five major inquiries that have emerged:
The ambiguity in Trump’s statement leaves many questioning which drugs will fall under the new tariff policy. It remains unclear whether companies with existing U.S. manufacturing plants will qualify for exemptions or if these exemptions will apply to all products or just those produced domestically. For instance, Novo Nordisk and Eli Lilly, makers of popular weight loss drugs like Wegovy and Zepbound, respectively, have announced plans to invest in U.S. manufacturing. However, it’s uncertain if their intentions will suffice for an exemption.
On the other hand, AstraZeneca, which produces the asthma medication Symbicort, has pledged to invest $50 billion over the next five years to expand its U.S. operations. Despite these investments, many well-known brand-name drugs continue to be manufactured overseas, particularly in Europe, which raises concerns about potential price hikes.
Currently, only 1 in 10 prescriptions filled in the U.S. is for brand-name drugs; the majority are for generics, which are typically less expensive and not subject to these tariffs. The impact on patient prices will largely depend on how many drug manufacturers receive exemptions and whether they choose to pass any increased costs onto consumers. Dr. Aaron Kesselheim from Harvard Medical School noted, “Ultimately, tariffs are taxes on patients,” suggesting that drug companies may transfer these costs to consumers at the pharmacy counter.
Pharmaceutical insurers and middlemen known as pharmacy benefit managers may attempt to negotiate with drug manufacturers or absorb some of the tariff-related costs. However, it’s more likely that they would pass the costs onto patients through increased copays. Kesselheim emphasizes that this concern extends to individuals covered by government health programs, which could also see price hikes.
Experts are skeptical that the new tariffs will significantly boost U.S. drug manufacturing. Kesselheim points out that building a manufacturing plant is a complex and costly decision that involves navigating various regulatory hurdles. Conti highlights that establishing new production facilities could take anywhere from two to five years, and even updating existing plants requires a significant time investment.
If the tariffs focus solely on brand-name medications, Kesselheim believes patients may not face shortages since large pharmaceutical companies have substantial profit margins that could accommodate the tariff costs. However, smaller companies producing niche brand-name products might struggle to absorb these costs, raising concerns about potential shortages. If the tariffs extend to generic drugs, the risk escalates significantly, as these medications are often priced close to their production costs, making it difficult for manufacturers to justify building new facilities.
As the deadline for the tariff implementation approaches, patients, pharmaceutical companies, and insurers are left grappling with uncertainty. With many questions unanswered, the impact of Trump’s tariff announcement on prescription drug prices, availability, and the U.S. manufacturing landscape remains to be seen. Stakeholders in the healthcare system will need to closely monitor developments to understand the full implications of these new tariffs on medications that millions of Americans depend on.
