Today is President Donald Trump’s deadline for large pharmaceutical manufacturers to negotiate onshoring agreements to avoid 100 percent tariffs on imported patented drugs and ingredients. The onshoring agreements significantly reduce the tariffs on imported pharmaceuticals.
The president has made lowering prescription drug costs a priority with his Most Favored Nation initiative under Section 232 of the Trade Expansion Act of 1962. President Trump has also cited the need to strengthen the domestic supply chain as part of the reasoning behind the tariffs. In the effort to shift manufacturing to the U.S., the president recently announced that generic drugs may be subject to tariffs two years from now.
The White House highlighted, “Orphan drugs, drugs for animal health, and certain other specialty pharmaceutical products will be exempt, if they are from trade deal countries or meet an urgent public health need.”
As the Lord Leads, Pray with Us…
- For President Trump as he seeks to reduce the cost of pharmaceutical products for Americans and strengthen the nation’s supply chain.
- For Commerce Secretary Lutnick and Trade Representative Greer as they engage in discussions with pharmaceutical executives.
- For members of the Senate as they consider outstanding legislation ahead of the August recess.
