Key Takeaways
President Donald Trump has proposed imposing 100% tariffs on brand-name or patented medications unless pharmaceutical companies increase U.S. manufacturing. Although enforcement is postponed as negotiations continue, generic drugs won’t be affected but could see cost impacts from imported ingredients. Experts are concerned these tariffs may lead to higher drug prices for certain individuals, influenced by their insurance coverage.
Recently, Trump declared a 100% tariff on imports of brand-name or patented medications, contingent on drug companies establishing manufacturing within the United States. While these tariffs were slated to commence on October 1, their enforcement is currently paused as efforts are made to negotiate agreements with major pharmaceutical firms.
Many U.S. pharmaceutical companies primarily develop drugs at home but perform manufacturing abroad where costs are more manageable. Trump aims to bolster U.S. drug manufacturing, and tariffs are one strategy he’s pursuing to reach that goal.
Which Drugs Might Be Affected?
The announced 100% tariffs specifically target brand-name or patented medications. However, it’s uncertain which drugs will be impacted, as major pharmaceutical companies such as Eli Lilly, AstraZeneca, and AbbVie have pledged new investments in U.S. manufacturing.
Should the tariffs take effect, not all drug categories will face tariffs, and rates will differ based on classification.
Generic Drugs
Generic medications, which make up about 90% of what is sold in the U.S., will be exempt from the tariffs. However, there is a possibility that certain imported ingredients could incur tariffs. If you see a price increase in your generic medications, consider using discount drug cards, like GoodRx or SingleCare, to help identify lower-cost options. Common examples of generic drugs include cholesterol medicines like Lipitor (atorvastatin) and antiseizure drugs such as Neurontin (gabapentin).
Imported Brand-Name Drugs
Drugs imported from the European Union and Japan would incur a 15% tariff based on previously established agreements.
Ozempic, produced by the Danish drug company Novo Nordisk, likely won’t be subject to the new tariffs, as manufacturing takes place in the U.S. On the other hand, products like Botox, which is produced exclusively in Ireland, could face a 15% tariff.
Medicare Negotiated Drugs
Starting in January 2026, 10 popular brand-name drugs are set to experience significant price drops for individuals on Medicare Part D plans. These include drugs like Eliquis, Xarelto, and Stelara.
“Regardless of the drugs’ manufacturing location, the negotiated prices will remain unchanged,” stated Mariana Socal, MD, PhD, an associate professor at the Johns Hopkins Bloomberg School of Public Health.
Expected savings will range from a 38% decrease for Imbruvica to a staggering 79% drop for Januvia, according to Medicare.
Small Biopharmaceutical Drugs
In recent years, a variety of biopharmaceutical drugs have been approved in the U.S., including those developed via recombinant DNA technology and gene cloning.
Many smaller biotech firms conduct production overseas and likely would struggle to relocate such operations back to the U.S., according to Albert Wertheimer, PhD, an adjunct professor at Touro College of Pharmacy in New York City.
He added that smaller companies may have to pass along any tariff-related costs to consumers if these tariffs are levied.
What to Do If You Notice Price Increase for Your Drugs
Should the tariffs be enacted, they could lead to higher consumer prices for medications.
“Prices for drugs in the U.S. already have substantial profit margins, meaning that large pharmaceutical companies could absorb the tariff costs without passing them on to consumers,” noted David Blumenthal, MD, a professor of public health and health policy at Harvard T.H. Chan School of Public Health.
“However, companies may opt to transfer these additional costs to consumers if the tariffs remain in place for extended periods. Furthermore, tariffs could potentially raise employee health insurance premiums if employers face higher medication costs,” he added.
The extra amount you would need to pay depends on the specifics of your insurance policy, according to Socal. If your copay is a flat fee, that amount will stay the same. Conversely, if your insurance includes a coinsurance structure of 20% or 50%, any price increases would directly affect your payments.
If your medication prices rise, consult your doctor before discontinuing any treatment, Socal advised. You might contact the drug manufacturer for assistance programs or talk with your doctor about cost-effective alternatives that are still effective.
Will TrumpRX Help Save Money?
PHRMA, representing the drug industry, has introduced a new platform, Americasmedicines, which aims to connect consumers with companies offering direct-to-consumer medications. Although details are still forthcoming, the site is expected to launch in January 2026.
A similar initiative, TrumpRX, was announced, designed to offer medications directly to U.S. residents at prices competitive with foreign markets. This website is likely to assist those needing to pay out-of-pocket for their prescriptions.
