No Tariff for Pharma Firms with US Facilities, Says Trump as 100% Duty on Branded Drug Imports Kicks In
New Delhi: Branded and patented pharmaceutical imports will face a 100% import duty in the United States from October 1, 2025, President Donald Trump announced. However, companies that have already started building drug manufacturing plants in America will be spared.
According to Trump, pharma firms that have “broken ground” or are “under construction” with new U.S. drug production facilities will not fall under the tariff plan. “There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started,” he clarified.
The announcement is part of a broader tariff package. Imports of heavy trucks will attract a 25% duty, kitchen cabinets and bathroom vanities 50%, and upholstered furniture 30%. The pharmaceutical levy, however, has drawn the most attention because of its potential impact on global supply chains.
Indian and multinational pharmaceutical companies are now evaluating the impact of the move. Many firms already have U.S. manufacturing investments or are planning to build facilities, which could secure their exemption from the new duty.
According to a recent Financial Express report, the exemption reflects Trump’s push to bring back domestic drug manufacturing and reduce dependence on foreign production. Industry analysts suggest that while the rule offers relief to companies with U.S. plants, it could also accelerate investment decisions among others that want to maintain market access.
The tariff move, set to take effect in October, is expected to reshape pharmaceutical trade, with the full impact depending on enforcement and how quickly firms respond with new U.S.-based production.
