Daijiworld Media Network – Washington

Washington, Oct 1: US President Donald Trump has issued a stern warning to pharmaceutical companies, cautioning them of an additional 5% to 8% tariff if they fail to strike pricing and manufacturing deals with the government.

Last week, Trump had announced a sweeping 100% tariff on all patented pharmaceutical imports to the United States, sparing only those drugmakers who establish manufacturing plants within the country. The new levies are scheduled to take effect from Wednesday, October 1.

On Tuesday, Pfizer Inc. became the first major pharmaceutical company to reach an agreement with the Trump administration. Under the deal, Pfizer will reduce drug prices distributed through the Medicaid program and invest $70 billion into research, development, and domestic manufacturing over the coming years. In return, the company has secured a three-year grace period from the steep tariffs.

Pfizer has also partnered with TrumpRx, a newly launched government-backed online platform where Americans can purchase prescription medicines at discounted rates negotiated by the federal government. Through this collaboration, Pfizer will make select products available at an average 50% discount directly to consumers.

This move is part of Trump’s push for a “most favoured nation” policy in drug pricing, aimed at ensuring Americans pay amounts comparable to those in developing countries. The administration has long argued that US consumers face “massively higher” drug prices than people in other nations, effectively subsidizing the global market.

Trump had earlier pledged to cut prescription drug costs dramatically, claiming in August that prices would be reduced by 1,400% to 1,500%.