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Patent pending: how Trump’s tariff tests global pharma

Episode #5418 December 2025

President Trump has proposed a one hundred percent tariff on branded and patented pharmaceutical imports. While these were due to take effect by October 2025, companies are still in negotiations and might be eligible for an limited exemption from the tariff if they shift manufacturing to the US or agree to reduce the prices of certain products. The measure is part of a wider plan to rebuild domestic manufacturing and reduce the US trade deficit.

Beginner summary

President Trump has proposed a one hundred per cent tariff on imported branded and patented pharmaceutical products. The policy aims to bring drug manufacturing back to the US to boost jobs and reduce the trade deficit. Only manufacturers actively building facilities in the US will qualify for exemptions, though what “building” means remains unclear. Some nations, like the EU and Japan, are protected by trade agreements capping tariffs, while others, including the UK, face full exposure.

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