Pharmaceutical tariffs take effect

(CNN)–President Trump’s new pharmaceutical tariffs went into effect Tuesday (September 29).

First announced in April, the 100% tariffs affect certain patented pharmaceutical products and ingredients.

The administration says the goal is to incentivize domestic drug manufacturing.

However, major pharmaceutical giants are largely exempt from the tariffs through separate agreements and pricing deals.

The levies will mostly impact small and midsize drugmakers.

Experts say the new tariffs may force them to close or merge with larger companies, which could drive up prices for consumers.