U.S. President Donald Trump announced Thursday that the U.S. will impose a 100% tariff on 'any branded or patented Pharmaceutical Product' entering the country from October 1, unless firms build drug manufacturing plants locally. This measure does not apply to companies constructing such plants in the U.S., as stated by Trump. He emphasized that the exemption covers projects where construction has started, including sites that have broken ground or are under construction. According to a post on Truth Social (https://truthsocial.com/@realDonaldTrump/posts/115267512131958759), 'there will be no Tariff on these Pharmaceutical Products if construction has started,' stating this during his Tuesday press conference. The announcement followed Trump’s plan to introduce a 25% duty on heavy trucks and a 50% levy on kitchen cabinets, bathroom vanities, and associated products, which will begin on October 1. In August, Trump outlined plans for potentially reaching up to 250% tariffs on pharmaceutical imports, the highest he had threatened so far. He indicated an initial small tariff, followed by a maximum of 150% in a year and then 250%. These new duties align with broader national security investigations into imports of robotics, industrial machinery, and medical devices, as highlighted by the Department of Commerce (https://www.cnbc.com/2025/09/25/trump-tariff-threat-looms-over-robotics-and-medical-devices-section232-import-investigation.html). Recent probes by the Department of Commerce expanded the list of goods subject to higher tariffs to include personal protective equipment such as surgical masks, N95 respirators, gloves, and other medical consumables. The Commerce Department clarified that pharmaceutical products will not be covered under this investigation, as these imports are already examined in a separate Section 232 investigation. Any additional duties resulting from sector-specific probes would be stacked on top of Trump’s country-specific tariffs, though the EU and Japan have reached agreements that may shield them from further levies.
