September 26, 2025
NEW DELHI – US President Donald Trump announced a 100 percent tariff on “branded and patented pharmaceutical imports,” effective October 1, 2025, unless companies establish manufacturing facilities in the United States.
“Starting October 1, 2025, we will be imposing a 100 pc tariff on any branded or patented pharmaceutical product, unless a company is building its pharmaceutical manufacturing plant in America,” Trump declared on his social media platform.
Trump said that the new tariff would not apply to companies already “building” pharmaceutical manufacturing facilities in the United States.
“’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,” he said.
The impact of the pharmaceutical tariff is expected to be significant for countries like India, whose pharmaceutical industry is highly export-oriented and deeply reliant on the US market. In May 2025 alone, India’s pharmaceutical exports reached USD 4.96 billion, reflecting a 7.38 pc increase over the same period last year, according to data from the Pharmaceuticals Export Promotion Council of India (Pharmexcil). The council highlighted the sector’s continued momentum and its growing role in global healthcare supply chains.
The pharmaceutical tariff is part of a larger package of import duties introduced by Trump in what he described as a necessary measure to reduce US dependence on foreign supply chains and bolster national security.
The Trump administration had imposed a 50 pc tariff on Indian goods, along with an additional 25 pc “penalty tariff” linked to India’s ongoing purchase of Russian oil. These measures have strained trade relations and raised concerns among Indian exporters, especially in critical sectors like pharmaceuticals.
Trump’s tariffs are part of a broader strategy aimed at reshaping American trade policy and boosting domestic manufacturing.
Other newly announced tariffs include a 50 pc duty on imports of kitchen cabinets and bathroom vanities, 30 pc on upholstered furniture, and 25 pc on heavy-duty trucks. These follow a round of tariffs introduced in August 2025 targeting various sectors in an effort to reduce the US trade deficit and promote his “Make America Great Again” (MAGA) economic agenda.