Amid the Iran-US tension, the Trump administration is considering tariffs on some pharmaceutical companies. If these companies do not agree to the Trump administration’s conditions, they may face tariffs of up to 100%. Especially affected are companies that import their medicines into the US. This means that medicines shipped from India to the US could also be affected.
According to Bloomberg, the Trump administration could announce tariffs on drugmakers as early as Thursday if they do not reach agreements ensuring lower prices in the US. Citing sources, Bloomberg reported that these tariffs could be applied up to 100% on imported branded and patented medicines. This initiative follows an investigation under Section 232 of the Trade Expansion Act.
These Companies Agreed to Conditions
The report further states that pharmaceutical companies such as Pfizer and AstraZeneca have secured tariff exemptions for several years by entering into agreed price agreements and commitments through the new TrumpRx.gov platform. Eli Lilly, Johnson & Johnson, and Merck have promised to make significant investments to expand their US operations to avoid penalties.
According to the report, companies that do not make agreements or negotiate with the administration will have to pay a 100% tariff. However, these plans are not final and may be changed. Exemptions may also be given for certain drugs and diseases.
Trump threatening for over a year
US President Donald Trump has been threatening tariffs on the pharmaceutical sector for over a year, with proposals ranging from 100 to 200%. The goal is to encourage drug companies to bring production back to the US and to reduce drug prices for US patients.
Supreme Court overturned tariffs
The industry was exempted from global tariffs imposed in 2025, which were later overturned by the Supreme Court after individual agreements with over a dozen companies. Following the Supreme Court’s overturning of the tariff plan, Donald Trump is once again looking for new ways to impose tariffs.
Significantly, the tariff plan comes at a time when the US is entangled in a conflict with Iran and is trying to find a way out in any way. Donald Trump has said in his speech that he will take some big action in 2 to 3 weeks, leading to speculation that the situation could return to somewhat normal thereafter.
