Trump Announces 100% Tariff On Imported Pharma Drugs Starting October 1
The US President has long been hinting at a 100% tariff on Pharmaceutical companies after his administration momentarily exempted the sector from tariffs in his 'Liberation Day' tariff round.
US President Donald Trump announced on Friday that he will impose a 100% import tax on pharmaceutical drugs unless the company has manufacturing capacity in the United States.
In a post on Truth Social, Trump said that, "Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America."
He clarified that building a manufacturing plant would mean "breaking ground" and/or "under construction." He further added that there will, therefore, be "no Tariff on these Pharmaceutical Products if construction has started."
The US President has long been hinting at a 100% tariff on Pharmaceutical companies after his administration momentarily exempted the sector from tariffs in his 'Liberation Day' tariff round.
While the full details are yet to be spelt out, the tariff will not be applicable to those Indian companies that already have manufacturing plants in the US.
The US is the largest export destination for Indian pharmaceutical companies, with India shipping out $3.7 billion worth of pharma products to the US in the first half of 2025 alone.
While the newly announced 100% import tariff primarily targets branded and patented drugs, typically dominated by multinational corporations, there is uncertainty over whether complex generics and specialty drugs from India might also come under scrutiny.
The catch, however, remains that the companies with manufacturing plant in US won't see any tariff impact and several Indian drugmakers already have manufacturing facilities in the US, including Cipla, Dr. Reddy’s Laboratories, and Lupin, which could shield them from the tariff.
Biocon, a key branded player in the US market, also appears unaffected as it commissioned a new plant in the US earlier this month. Sun Pharma, another major player, may face some impact unless it announces plans for US-based manufacturing soon.
In an earlier statement, Trump had said that tariffs on Pharma could reach as high as 250%. In a CNBC interview in August, Trump said, “We’ll be putting a initially small tariff on pharmaceuticals, but in one year — one and a half years, maximum — it’s going to go to 150% and then it’s going to go to 250% because we want pharmaceuticals made in our country,” Trump said Tuesday in an interview on CNBC.
Trump had announced reciprocal tariffs of 25% on India that came into effect on August 7, he later added an additional 25% tariff on India for its purchases of Russian oil, bringing the total amount of levies imposed on New Delhi to 50%
