By Fineline Cube 
A White House spokesperson clarified that President Donald Trump’s proposed tariffs on imported pharmaceuticals will not apply uniformly to all trading partners. Under existing U.S.‑EU and U.S.‑Japan drug‑trade agreements, the tariffs will be capped at 15 % for European Union (EU) drug imports and at the rates already negotiated in the bilateral pact with Japan.
Key Points of the Agreement
- EU Framework Deal – Duties on pharmaceutical imports from the EU will be limited to a 15 % tariff, consistent with the terms of the 2024 framework agreement.
- Japan Pact – Japanese pharmaceutical products will be subject to the tariff rate specified in the U.S.‑Japan joint statement, ensuring parity with the EU and other trading partners.
- Broad Application – The U.S.‑Japan statement further confirms that tariff levels on Japanese drugs and semiconductors should not exceed those applied to other countries, including the EU.
Trump’s Social‑Media Statement
On Thursday, President Trump posted on his social‑media platform that the United States would impose a 100 % tariff on “any branded or patented Pharmaceutical Product” unless the company builds a pharmaceutical manufacturing plant in America. The White House emphasized that the 15 % cap for the EU and Japan is a direct result of negotiated agreements, thereby providing “promised relief” to those economies.
Implications for Global Supply Chains
- Trade‑Partner Stability – The tariff caps help maintain stability in U.S. trade relationships with key partners, preventing a surge in drug prices for European and Japanese consumers.
- Domestic Production Incentive – The 100 % tariff on non‑U.S.‑manufactured branded drugs underscores a push for domestic pharmaceutical production, potentially reshaping global supply chains.
- Industry Response – Pharmaceutical companies will need to reassess their sourcing strategies, balancing the cost of U.S. tariffs against the benefits of building manufacturing capacity in the United States.-Fineline Info & Tech