Trump's 100% Pharma Tariffs Take Effect, Risk Backfiring on Smaller Drugmakers

President Donald Trump's 100% tariffs on certain patented pharmaceutical products and ingredients took effect Sept. 29, 2026, targeting an industry largely exempt from such levies for decades under international agreements. Experts warn the move may not spur domestic manufacturing as intended. The burden falls heaviest on small and midsize drugmakers, most of which lack production facilities and rely on contract manufacturers, according to a Brookings Institution analysis. More than 100 drugmakers make at least one non-exempt drug. Marta Wosinska of Brookings said contract manufacturing competition in the US is at a "crazy level," making domestic expansion prohibitively expensive for these firms. Tariffs could force closures or mergers, reducing drug availability and raising prices. Exemptions are extensive: large pharma companies with "Most Favored Nation" agreements, generics, orphan drugs, and specialty medicines are largely excluded. EU, Swiss, Japanese and South Korean patented products face 15% rates; UK products are exempt.