The Trump administration’s tariff policy for prescription drugs moved from proposal to implementation, imposing a 100% sector tariff on prescription drugs and associated ingredients. Timing begins in roughly four months for large manufacturers and six months for smaller companies. Market impact will vary by product and supply chain, including whether a manufacturer has reached onshoring and pricing agreements with the Department of Health and Human Services. While some scenarios could narrow the effective tariff to near zero, the broad move raises near-term uncertainty for drugmakers’ cost structures and sourcing decisions. The policy shift also arrives amid ongoing debates about domestic capacity and pricing commitments, with tariff mechanics potentially influencing which companies can absorb additional costs while maintaining access.