Trump Declares 100% Tariffs on Pharmaceutical Imports in Major Trade Push
Donald Trump has sparked global trade tensions once again, vowing to impose 100% tariffs on pharmaceutical imports unless drug companies commit to building manufacturing plants within the United States.
Speaking on his Truth Social platform, the former US President warned that from 1 October, the tariffs will hit “any branded or patented pharmaceutical unless a company is building their pharmaceutical plant in America.”
He clarified that “building” means a site that has “breaking ground and/or under construction.”
This move forms part of a broader protectionist package. Other proposed measures include a 50% levy on bathroom vanities and kitchen cabinets, 30% on upholstered furniture, and 25% on heavy trucks.
The 100% #Tariffs announced by President #Trump on branded and patented pharmaceutical products, effective October 1, 2025—has serious implications for Indian pharma companies with U.S. exposure.
Here’s a strategic impact analysis tailored to your benchmarking lens:
Tariff… pic.twitter.com/RWqqT2bTdR
— Vishal Trehan_SEBI Registered RA (INH000016816) (@Risk_to_Reward) September 26, 2025
Billions at Stake
The announcement comes as the US imported over $233 billion worth of pharmaceutical and medicinal products last year.
Ireland stands out as one of the largest exporters, supplying roughly a quarter of the EU’s pharmaceutical shipments to the US, around €33 billion of a total €120 billion in 2024.
Analysts warn the policy could have seismic effects on global supply chains, potentially forcing European manufacturers to rethink their operations.
Pharmaceutical hubs like Ireland, Germany, and Switzerland are expected to feel the squeeze if the tariffs go ahead.
Inflation Concerns Mount
Markets reacted sharply. Inflation fears deepened as Trump’s tariff threats circulated. Economists caution that drug prices in the US could climb, with ripple effects in international markets.
The US Consumer Price Index has already risen 2.9% over the past year, up from 2.3% in April when initial tariff plans were first floated.
Despite the economic jitters, Trump dismissed inflation worries outright, insisting, “We’re having unbelievable success.”
Job Cuts and Uncertainty
The Bureau of Labour Statistics reports that 42,000 manufacturing jobs have been lost since the first round of tariffs earlier this year, while construction firms have downsized by 8,000 workers.
Trump’s new plan has left many industry leaders questioning whether the policy will create more domestic jobs or simply drive up costs.
With less than a week before the proposed start date, pharmaceutical companies face a stark choice: invest in American production or brace for crippling tariffs. EU exporters, particularly Ireland, could see their lucrative trade pipelines disrupted.
The announcement also follows Trump’s recent health-related controversies, including his paracetamol, autism remarks that provoked strong reactions from UK medical experts.
Trade experts say this is more than a US domestic policy; it’s a global economic flashpoint.
If implemented, Trump’s 100% tariffs on pharmaceutical imports could reshape medicine supply chains, push up healthcare costs, and fuel a new round of trade wars.
