"Covered items include finished branded medicines and patented therapies from abroad, hitting suppliers in Asia, Europe, and beyond - though trade deals with the EU and Japan limit some exposure there. Excluded are generics, unbranded drugs, and - crucially - products from companies actively building U.S. facilities, defined as those with construction started or ground broken. This exemption rewards firms investing stateside."
"The tariffs coincide with pricing pressures, but a landmark deal sets pharma apart. Yesterday, Pfizer ( ) reached a voluntary agreement with the government to align U.S. prices for new drugs with the lowest in developed nations, including most-favored-nation rates for Medicaid via a new TrumpRx.gov site. This provides tariff certainty for three years if Pfizer boosts U.S. manufacturing, shielding it from import duties while curbing price hikes."
"Experts note this framework could stabilize costs without broad disruptions, as stockpiling and exemptions soften impacts. Pharma stocks reacted positively to the news, broadly climbing with the VanEck Pharmaceutical ETF ( NYSEARCA:PPH ) up 1.2% amid relief over the deal and limited tariff fallout for domestic-heavy players. The new tariff regime tilts the field toward U.S.-centric drugmakers, making three below clear buys for growth ahead."
The U.S. imposed 100% tariffs on imported branded and patented pharmaceutical products to push manufacturing to the United States and strengthen domestic supply chains. Tariffs cover finished branded medicines and patented therapies from abroad, while trade deals with the EU and Japan limit some exposure. Generics and unbranded drugs are excluded, and a construction-based exemption shields products from firms already building U.S. facilities. Pfizer agreed to align U.S. prices for new drugs with the lowest in developed nations and apply most-favored-nation Medicaid rates via TrumpRx.gov. The pact grants three years of tariff certainty if Pfizer expands U.S. manufacturing, and markets reacted positively as U.S.-centric drugmakers gained advantage.
Read at 24/7 Wall St.
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