Overview

• The White House says companies can avoid the levy if they have begun building U.S. manufacturing, which the president defined as “start of work” or “under construction.”
• EU officials contend their July–August understanding with Washington limits duties on European pharmaceutical exports to a 15% ceiling, setting up a legal and diplomatic test of the tariff’s scope.
• The measure targets branded and patented medicines, not generics, which analysts note reduces immediate supply risk but leaves key implementation details unresolved.
• Industry groups EFPIA and PhRMA warn the move would raise costs, disrupt supply chains and deter investment, as economists caution it could add to inflation pressures.
• Some drugmakers are expanding U.S. production, including Eli Lilly’s announced plants in Houston and Virginia, though facilities can take up to five years to become operational; the administration has yet to publish its national‑security report and also outlined new tariffs on cabinets, furniture and heavy trucks.