In a sweeping trade escalation, President Donald Trump announced on Thursday that the United States will impose a 100% tariff on imports of branded or patented pharmaceutical products beginning October 1, unless those companies are already constructing manufacturing facilities domestically.

Trump posted the decision on his Truth Social account, stating:

“There will, therefore, be no Tariff on these pharmaceutical products if construction has started.”

The move is positioned as a bold push to revitalize U.S. pharmaceutical manufacturing and reduce dependency on foreign drug producers. In the same announcement, he also introduced new tariffs on heavy trucks (25%), kitchen cabinets (50%), and upholstered furniture (30%) set to take effect on October 1.

International and Market Reactions

The announcement triggered a selloff in pharmaceutical stocks globally. Indian pharma firms, despite being major exporters to the U.S., fell ~2.6% in response—though many pointed out that their exports are largely generics, which may be exempt from the new duty.

Some major pharma companies have preemptively accumulated stockpiles or accelerated U.S. investments to mitigate risk. For example, Novartis CEO said the company maintains reserves to survive potential tariffs.

Risks & Uncertainties

• Legal authority unclear: The legal basis for applying such sweeping tariffs is not yet specified, and may face lawsuits from drugmakers and trade partners.

• Inflation & health costs: If passed through to consumers, the tariffs could drive up drug prices and healthcare costs.

• Supply chain disruption: Drug importers and insurers may face disruptions in pricing, distribution, and sourcing.

• Timing & execution: Pharmaceutical facility buildouts take long lead times, which may test the grace period or exemptions.

Outlook

If enforced, the tariffs would mark one of the most aggressive trade actions targeting healthcare in U.S. history. The pharmaceutical industry and trading partners will now scramble to respond—either via compliance, legal challenge, or lobbying. The next few weeks will be critical as markets digest the implications.