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President Donald Trump's long-awaited threat to impose pharmaceutical tariffs may not pose as much of a challenge as drugmakers once feared, following his new drug pricing deal with Pfizer
Trump's Tuesday agreement with the company to voluntarily lower U.S. drug prices included a three-year exemption from pharmaceutical-specific tariffs, as long as the firm further invests in domestic manufacturing. Pfizer on Tuesday pledged to put $70 billion into U.S. manufacturing and research, on top of previous investments.
That deal brought relief and clarity to Pfizer and the broader pharmaceutical industry, signaling that many drugmakers could strike similar agreements that would make them immune to the levies for most of Trump's term.
The Trump administration also made it clear that it will try to secure those drug pricing agreements before it imposes tariffs. Commerce Secretary Howard Lutnick on Tuesday said he will let companies finish their negotiations with the administration before setting pharmaceutical-specific levies under the legal authority known as Section 232.
