Trump Declares 100% Tariffs on Pharmaceuticals Effective October 1
President Donald Trump declared on Thursday that branded pharmaceutical products will be subjected to 100% tariffs starting October 1, 2025, unless manufacturers establish plants within the United States.
The tariffs, which essentially double the price of imported branded drugs, are aimed at pharmaceutical companies that do not have “breaking ground” or construction in progress for U.S. manufacturing facilities. The announcement sent tremors through the global pharmaceutical markets, with European drugmakers like Novartis and Roche experiencing a 1.2% drop in early trading, while Asian companies including Japan’s Sumitomo Pharma fell by 3.5%.
In addition to this, Trump also declared extra tariffs on:
- Kitchen cabinets (50%)
- Upholstered furniture (30%)
- Heavy trucks (25%)
All of these tariffs will take effect from October 1. The pharmaceutical tariffs represent the most severe trade measures since Trump’s reciprocal tariffs on global trading partners last April. Major drugmakers including Eli Lilly and Johnson & Johnson have already pledged billions to new U.S. manufacturing facilities in response to Trump’s threats.
Source: CNBC