Pharma Executives’ Guide to 2025: U.S. Drug Tariffs, TrumpRx, and Manufacturing Shifts

The Trump administration’s latest policy signals could mark a significant change for the pharmaceutical sector – combining the threat of sweeping tariffs on branded drugs with the rollout of a new federal drug-discount website, “TrumpRx.” While neither has fully taken effect, the direction is clear: more pressure on global companies to establish a U.S. manufacturing footprint and re-evaluate pricing models.

As with earlier tariff discussions, much remains speculative. Below, we outline the current state of play, the implications for manufacturers, and key watchpoints for pharma executives.

Tariffs: Broad Threats with Targeted Exceptions

• The administration has proposed 100% import tariffs on branded and patented medicines, originally slated for October 1, 2025. As of publication, these have not been implemented.
• Generics remain outside the scope — a notable carve-out, given they account for most prescriptions in the U.S.
• Imports from the European Union are covered at a lower rate of 15%, in line with recent trade arrangements.
• Companies can avoid penalties by demonstrating U.S. manufacturing activity — either an active site under construction or a project where construction has begun.

Implications:

• Multinationals without domestic capacity may face heavier pressure to move capital into the U.S. or seek negotiated exemptions.
• Uncertainty persists around whether API imports could eventually be included, which would ripple into U.S. operations reliant on foreign sourcing.
• International trade bodies and partners may contest the policy, setting up a period of potential disputes and delays.

TrumpRx: A Federal Direct-to-Consumer Drug Platform

• Announced alongside an agreement with Pfizer, TrumpRx is a government-run online portal aimed at expanding access to discounted drugs, particularly for patients without insurance.
• The platform is targeted for launch in early 2026, with Pfizer as the first participating company.
• Pfizer has committed to significant discounts (ranging from roughly 50% to 85%) on select products offered through the site.
• In return, the company secured a three-year waiver from the proposed tariff penalties.

Comparison to GoodRx

• Like GoodRx, TrumpRx creates a public venue for discounted cash pricing.
• The model may lessen the influence of Pharmacy Benefit Managers (PBMs) and other middle-channel players.
• Unlike private platforms, a government-backed site could wield more bargaining power, potentially setting new price expectations for a broader market.

Key Signals Emerging

• One-off negotiations with manufacturers are likely, using tariff relief or exemptions as leverage.
• Federal financing tools — including loans, guarantees, or even equity stakes — may be deployed to accelerate U.S. plant construction.
• Channel disruption is a possibility if TrumpRx gains traction, altering how patients access and pay for high-volume therapies.