Trump threatens pharmaceutical firms with new tariffs, and he demands to negotiate prices, as Pfizer will be exempted by investing massively and reducing drug prices.

US President Donald Trump has threatened pharmaceutical firms with an extra 5-8% tariffs should they fail to reach pricing deals with his government. The action is given his previous proposal to put a 100% tariff on imported patented drugs beginning October 1, 2025.

The pharmaceutical industry continues to face pressure by the White House to accept manufacturing and pricing arrangements as part of its most-favored-nation policy. According to the administration, this policy will prevent Americans from paying more money on drugs than in other countries.

It is a caution issued on the heels of a historic agreement between Pfizer and the government. The pharmaceutical giant saw fit to deem the prices of drugs in the Medicaid program down and to spend close to 70 billion dollars on research and development and on the production of the drugs in the US. The government would grant Pfizer a three-year exemption from the impending 100% tariff.

Pfizer would also offer certain medicines on the federal "TrumpRx" portal at a 50% discount on direct consumer purchases, which would fundamentally change the dynamics of the pharmaceutical markets.

Nonetheless, it is not clear how far the new tariffs will be extended and whether other organizations will do the same thing Pfizer did. According to analysts, the outcome can greatly impact the global trade and industrial supply chains, and the availability of drugs to patients in the US can be influenced.