Pharmaceuticals face 100% tariffs in US - unless they have a deal

Patented medicines will face a 100% tariff entering the US - but companies can still avoid the taxes by striking deals with the administration, the White House has said. US President Donald Trump ordered the long-threatened levies on Thursday. The White House said the aim of the tariffs was to reduce national security risks by boosting manufacturing of key medicines in the US. The importance of the move may be largely symbolic at this point, as it does not apply to generic medicines - the most commonly used medicines in the US. Many of the biggest drug-makers have also already struck agreements that will allow them to escape the levies, with more expected to do so in the weeks ahead. "The goal is to bring the rest of the companies to the bargaining table," said Sean Sullivan, professor at the University of Washington and London School of Economics. "It's all about leverage." Companies that commit to launch new manufacturing in the US before the end of Trump's term in January 2029 would face only a 20% tariff on their medicines, the White House said. The tariff would drop to zero, if the firms strike pricing deals with the government. In previous agreements, companies have agreed to