The 100% Pharma Tariff Is on Hold. What Could This Mean for Your Drug Costs?

President Donald Trump recently announced 100% tariffs on imports of brand-name or patented medicines unless the drug companies commit to building manufacturing facilities in the United States. The tariffs were scheduled to take effect on Oct. 1, but they have been put on hold as the administration attempts to strike deals with major pharmaceutical companies.

Many U.S. pharmaceutical companies develop drugs domestically but manufacture them abroad, where labor and other costs are lower. Trump has said that he wants to expand U.S. drug manufacturing and has pointed to tariffs as one way to achieve this goal.

Which Drugs Might Be Affected?

The latest announcement of the 100% tariffs applies to brand-name or patented medications. It’s unclear which drugs will be directly affected, because major pharmaceutical companies, including Eli Lilly, AstraZeneca, and AbbVie, have all promised new investments in U.S. manufacturing.

If the tariffs take effect, not all drug categories will be subject to tariffs, and the rates will vary accordingly. 

Generic Drugs

Generic drugs, which account for about 90% of the drugs sold in the U.S., would be exempt from the tariffs. However, certain imported ingredients may be subject to tariffs. If you notice a price increase on your generic medicines, consider using a discount drug card, such as GoodRx or SingleCare, to see if they can help you find lower-cost alternatives. Common generic drugs include cholesterol-lowering drug Lipitor (atorvastatin) and antiseizure drug Neurontin (gabapentin).

Imported Brand-Name Drugs

Drugs imported from the European Union and Japan would be subject to a 15% tariff under agreements established last summer. 

Ozempic, manufactured by Danish drugmaker NovoNordisk, should not be subject to the new tariffs since the company has manufacturing plants in the U.S. However, drugs like Botox, which is manufactured only in Ireland, could be subject to a 15% tariff.

Medicare Negotiated Drugs

Beginning in January 2026, 10 widely used brand-name drugs will drop significantly in price for people with Medicare Part D plans. These include Eliquis, Xarelto, Stelara, and more.

“Regardless of where the drugs are manufactured, the negotiated prices will hold,” said Mariana Socal, MD, PhD, an associate professor at the Johns Hopkins Bloomberg School of Public Health.

Savings will range from a 38% reduction in cost for Imbruvica to a 79% reduction for Januvia, according to Medicare. 

Small Biopharmaceutical Drugs

In recent years, the U.S. has approved several biopharmaceutical drugs, including those developed through recombinant DNA technology and gene cloning.

Many small biotech firms manufacture overseas and likely can’t afford to move those operations to the U.S., said Albert Wertheimer, PhD, an adjunct professor at the Touro College of Pharmacy in New York City.

He added that small companies may have to pass along the tariff cost to consumers if the tariffs are imposed.

What to Do If You Notice Price Increase for Your Drugs

If the tariffs take effect, they could result in higher consumer drug prices.

“Drug prices in the U.S. already have a hefty profit built into them, so large drug companies could absorb the tariff cost and not pass them along,” David Blumenthal, MD, a professor of public health and health policy at the Harvard T.H. Chan School of Public Health, told Verywell.

“But companies may choose to charge customers the added cost if the tariffs are kept in place for a long period, and tariffs could increase the cost of employee health insurance premiums if employers are charged more by insurers to cover medications for employees,” he added.

How much extra you will have to pay depends on your insurance policy, according to Socal. For example, if your copay is a flat fee, that is what you will continue to pay. However, if you pay a coinsurance of 20% or even 50%, then if the price increases, your share of the cost will also go up.

If your drug costs increase, talk to your doctor before foregoing a drug, Socal said. You can reach out to the drug manufacturer for assistance programs or ask your doctor if there is an alternative that is effective but more affordable. 

Will TrumpRX Help Save Money?

PHRMA, which represents the drug industry, announced a new website, Americasmedicines, which will provide access to companies offering direct-to-consumer medications. Details are still limited, but the site is expected to launch in January 2026.

Trump announced a similar site, TrumpRx, which will sell drugs directly to people in the U.S. at the lowest price they are sold for in foreign countries. The website will likely benefit individuals who pay for medications out-of-pocket.