The Trump administration signed an executive order imposing 100% ad valorem tariffs on imported brand-name drugs and active pharmaceutical ingredients, positioning the policy as a national security measure under Section 232. The order includes carveouts, including exemptions for generics, orphan drugs, and brand medicines made by companies that have entered “Most Favored Nation” (MFN) agreements. For manufacturers that have not secured tariff relief, the document also creates a reduced 20% tariff path for brands tied to plans to start manufacturing facilities in the U.S., while certain products from select treaty countries face a 15% rate. Industry groups such as PhRMA argued the move could increase costs and jeopardize investment timelines. Beyond the immediate tariff math, the policy adds a new layer of negotiating leverage for biopharma pricing and supply-chain strategies—especially for companies without advanced U.S. manufacturing footprints.