U.S. Pauses 100% Drug Tariffs, Pfizer Deal

The White House has paused plans to impose a threatened 100% tariff on imported branded pharmaceuticals while it negotiates with drugmakers and evaluates their proposals, saying it will prepare levies but let talks play out. Officials say the tariff authority stems from a Section 232 investigation, but enforcement timing is unclear and has been complicated by a federal shutdown. The administration has pressed companies to build U.S. manufacturing or accept most-favored-nation (MFN) pricing in exchange for exemptions. Pfizer reportedly secured a multi-year reprieve by agreeing to MFN access for state Medicaid, a direct-to-consumer initiative and roughly $70 billion in U.S. investment. The administration also delayed a separate proposal to close a loophole that can let some drugs avoid Medicare price negotiation, prompting critics to say the approach grants industry carve-outs despite pressure to lower prices. Together the actions show the administration using tariff threats as leverage to extract domestic investment and pricing commitments while leaving enforcement and coverage uncertain.