The Trump administration is reportedly preparing to impose tariffs on some pharmaceutical companies.

Sources familiar with the matter say that the Trump administration is expected to announce as early as Thursday that tariffs will be imposed on pharmaceutical companies that fail to reach agreements to keep drug prices low in the United States. This move will be the latest measure to impose tariffs on imported goods on the grounds of national security.

Over the past year, President Donald Trump has threatened to impose tariffs of 100% to 200% on the pharmaceutical industry to force drug companies to relocate production back to the U.S. and lower drug prices for American patients. Most major pharmaceutical giants, including Pfizer and Eli Lilly, have reached agreements with the White House in exchange for a three-year exemption from such tariffs.

The new tariffs stem from investigations under Section 232 of the Trade Expansion Act. Sources familiar with the matter say that companies that have not reached agreements with the government and have not engaged in negotiations will face a 100% tariff. Because the relevant information has not yet been made public, the sources requested anonymity.

Sources also say that the plan has not been finalized and could still change. They also indicated that some drugs and disease categories might be exempted.

The White House has not responded to the matter.