U.S. President Slaps 100% Tariff on Drug Imports
WASHINGTON — The U.S. president has announced a sweeping new trade measure that will impose a 100 percent tariff on all branded or patented pharmaceutical imports starting October 1, unless the manufacturer is actively building a production facility within the United States.
The directive, posted Thursday on Truth Social, marks a dramatic escalation in the administration’s push to localize critical industries and reduce reliance on foreign supply chains.
In a post that sent shockwaves through global markets, the president laid out the terms in blunt language:
“Starting October 1st, 2025, we will be imposing a 100 percent Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America.
“There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started,” he wrote.
The directive draws a hard line for multinational drugmakers, many of which have long relied on offshore production.
Bloomberg reported that the move follows earlier executive actions demanding pharmaceutical firms treat the U.S. as a “most-favored nation” in pricing.
Letters were sent to major companies including Eli Lilly and Genentech, urging them to comply with the administration’s reshoring agenda.
The pharmaceutical tariff is part of a broader package of industry-specific duties set to take effect next Wednesday.
Imported heavy trucks will be hit with a 25 percent duty, kitchen cabinets and bathroom vanities will face a 50 percent charge, and upholstered furniture will be taxed at 30 percent.
The U.S. president defended the measures as necessary to protect domestic manufacturers from what he described as “unfair flooding” of cheap foreign goods.
“It is a very unfair practice, but we must protect our manufacturing process for national security and other reasons,” he said.
The announcement came amid political turbulence, as former FBI Director James Comey—a longtime adversary of the president was indicted on perjury charges under mounting pressure from the administration.
The timing added fuel to an already volatile political climate and drew sharp reactions from both sides of the aisle.
Financial markets responded swiftly. The MSCI Asia Pacific Index fell 0.5 percent, marking its third consecutive decline, while pharmaceutical stocks across Asia slumped.
Analysts warned that the new tariffs could disrupt global supply chains and drive up consumer costs, particularly for essential medications.
Some fear the policy could trigger retaliatory measures from trade partners and complicate international negotiations.
With the October deadline looming, pharmaceutical companies face a stark choice: break ground on U.S. manufacturing or absorb the full weight of the new tariff regime.
The administration has made it clear that exemptions will only apply to firms that have already started construction—not those merely planning or proposing future investment.
As the U.S. president continues to flex executive authority, the latest round of tariffs signals a bold escalation in economic nationalism.
For drugmakers and importers, the message is unmistakable: build in America, or pay the price.
