Donald Trump Announces 100% Tariff On Imported Pharmaceutical Drugs From October 1

Donald Trump on Friday announced that all branded or patented drugs imported into the United States will face a 100 per cent tariff starting October 1, 2025, unless their manufacturers are building facilities in the country.

“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump wrote on his social media platform Truth Social.

He further clarified that “IS BUILDING” will be defined as ‘breaking ground’ and/or ‘under construction’. There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started.”

Trump has long maintained that tariffs are the key to forcing companies

to invest more in domestic factories.

He has dismissed fears that importers would pass along much of the cost of the taxes to consumers and businesses in the form of higher prices.

WILL TRUMP’s 100% TARIFF ON PHARMA IMPACT INDIA?

In August this year, a report by SBI Research had suggested that imposing tariffs on the pharmaceutical industry could significantly impact the earnings of Indian pharma companies, as nearly 40 per cent of India’s total pharma exports are directed to the US market.

The report highlighted that if Donald Trump imposes 50 per cent tariffs on Indian pharma exports as well, the earnings of pharmaceutical companies may decline by 5 to 10 per cent in FY26.

This is because many large Indian pharma companies derive between 40 to 50 per cent of their total revenue from the US market, per the report.

In FY25, around 40 per cent of India’s pharmaceutical exports were directed to the United States. India’s share in the US’s total pharma imports stood at 6 per cent in 2024.

A possible tariff of 50 per cent on pharma exports will also reduce the competitiveness of Indian products in the world’s largest pharmaceutical market and create pressure on profit margins, as companies may be unable to pass on higher costs to consumers, the report had suggested.

TRUMP ANNOUNCES TARIFF ON OTHER HOUSEHOLD PRODUCTS

A day before, the US President had said he would put import taxes of 50 per cent on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture and 25 per cent on heavy trucks starting October 1.

While Trump did not provide a legal justification for the tariffs, he stated on Truth Social that the taxes on imported kitchen cabinets and sofas were needed “for National Security and other reasons”.

The President continues to claim that inflation is no longer a challenge for the US economy, despite evidence to the contrary. In the US, the consumer price index has increased 2.9 per cent over the past 12 months, up from an annual pace of 2.3 per cent in April, when Trump first launched a sweeping set of import taxes.

In 2024, America imported nearly $233 billion in pharmaceutical and medicinal products, the Associated Press quoted the Census Bureau.

The new tariffs on cabinetry could further increase the costs for homebuilders at a time when many people seeking to buy a house feel priced out by the mix of housing shortages and high mortgage rates, AP said.

The report also quoted the National Association of Realtors as saying that there were signs of price pressures easing as sales listings increased 11.7 per cent in August from a year ago, but still the median price for an existing home was $422,600.

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