President Donald Trump recently posted on Truth Social that he intends to impose a 100% tariff on some imported prescription drugs, effective October 1, 2025. The 100% tariff has not been widely implemented as of October 30, 2025, but its threat remains an active tool for pressuring pharmaceutical companies. The new tariff would affect both brand-name prescription medications and patented medical products. The only way that a non-U.S. manufacturer of these products can avoid the tariffs is to break ground on or be in the process of building a pharmaceutical manufacturing plant in the United States.
The newly announced tariffs accompany the previously announced 50% tariffs on imported kitchen cabinets, bathroom vanities, and associated products, and a 30% tariff on imported upholstered furniture. These tariffs became effective October 1, 2025. However, the administration later paused the implementation of the tariff to pursue negotiations with pharmaceutical companies. According to Trump, these tariffs are necessary because imported products are flooding the United States, thus creating a need to protect national security and the manufacturing process.
If the 100% tariff on imported prescription drugs applies to many drug manufacturers, employees participating in employer-sponsored health plans could face steep increases in the prices they pay for some drugs. These large tariffs could also reduce or even eliminate the supply of some drugs.
Limitations in data from the U.S. Food and Drug Administration and other sources make it unclear how much of the U.S. prescription drug supply is imported. However, some have claimed that as much as 80% of active ingredients in U.S. prescription drugs are imported.
The new tariff on prescription drugs should not be a surprise, as Trump has been discussing the possibility for months. In July, Trump stated that his administration was considering imposing a 200% tariff on some drug imports.
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