Trump Proposes Up to 100% Drug Tariffs; Dorato Capital Buys $1.81M Merck Stake
The Trump administration will impose up to 100% tariffs on imported patented medicines over 120-180 days, capping duties at 15% for EU, Japan, South Korea, Switzerland and Liechtenstein, and up to 10% for the UK with domestic production commitments. Merck negotiated pricing concessions to limit its tariffs and Dorato Capital acquired 16,300 shares valued at $1.81 million.
1. Trump Administration Tariff Framework
The administration is rolling out a tariff framework targeting imported patented medicines produced outside trade-agreement countries, with duties phased in over 120 days for larger manufacturers and 180 days for smaller ones. Imports from the EU, Japan, South Korea, Switzerland and Liechtenstein are capped at 15%, while UK shipments face up to 10% unless paired with domestic manufacturing commitments.
2. Merck Concessions and Investor Activity
Merck negotiated pricing concessions, distribution terms and alignment with international benchmarks to avoid the steepest duties on its imports, shielding the bulk of its products from the 100% levy. In parallel, Dorato Capital purchased 16,300 Merck shares worth approximately $1.81 million, marking a significant new position in the company.