PREVIEW

Trump’s 100% Drug Tariff Plan Doubles as Negotiation Strategy. U.S. President Donald Trump has unveiled a sweeping plan to impose up to 100% tariffs on imported patented medicines — but the policy comes with built-in escape routes. The White House says companies can significantly reduce or even eliminate these tariffs by agreeing to manufacture drugs in the U.S. or cut prices through government deals. Firms investing domestically before 2029 could see tariffs drop to 20%, or even zero under pricing agreements tied to programs like Medicaid. Officials argue the move strengthens national security by boosting local production. But analysts say it’s less about immediate impact and more about pressure tactics. That’s because generic drugs — which make up the majority of prescriptions — are exempt, and many major pharmaceutical companies have already secured deals to avoid the tariffs. Experts warn smaller firms may struggle the most, potentially leading to higher costs. And while the policy has already triggered massive investment pledges, questions remain over how much real change it will deliver. For now, the message is clear: tariffs are being used as leverage to reshape the industry — not just tax it.
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