United States President Donald Trump on Friday announced that his administration will impose a 100% tariff on all branded & patented pharmaceutical products imported into the US, effective From October 1, 2025,Companies that are already building or have started constructing pharmaceutical manufacturing plants in the US will be exempt. Generic medicines (India’s biggest pharma export to the US) are not covered by this tariff.
In a post, Trump wrote, “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. ‘IS BUILDING’ will be defined as ‘breaking ground’ and/or ‘under construction.'”
This aggressive measure aims to incentivize domestic pharmaceutical production and reduce reliance on foreign manufacturers for innovative medicines.The new tariff will specifically target high-value, proprietary drugs, meaning that companies holding patents on their pharmaceutical products or those marketing branded versions will face a substantial cost increase for their imports.
Trump noted that companies that have already begun constructing plants in the United States will be exempt from the new tariff. “There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter!” the post stated.
companies that are already engaged in the construction of new pharmaceutical manufacturing plants within the United States or have commenced such construction projects. This exemption is designed to reward and further encourage onshore investment in the pharmaceutical sector.
The tariff policy explicitly excludes generic medicines, which represent a substantial portion of India’s pharmaceutical exports to the United States.
Trump also announced that US will impose a 50% tariff on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks
