The threat of new tariffs on drugmakers has led to a debate within the biotech industry over cutting voluntary pricing deals with the Trump administration in exchange for exemptions. Small and midsize biotech companies, which develop over half of all FDA-approved medicines, may face 100% tariffs on patented pharmaceuticals and active ingredients. The White House is using the same strategy that secured confidential "most favored nation" agreements with 16 large drug manufacturers. However, the trade group representing mostly smaller and midsized companies, BIO, has cautioned its members about the deals, calling them "shortsighted". The tariffs are needed to stimulate domestic pharmaceutical manufacturing and address a national security issue, particularly with China rapidly developing its life sciences capabilities.