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US President Donald Trump announced a massive new trade policy on Thursday, declaring that the United States will impose tariffs of up to 100 per cent on imported branded and patented pharmaceutical products starting October 1. The move is explicitly designed to force drug manufacturing back onto American soil and could have significant repercussions for major foreign exporters, including Indian drugmakers.
“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…” – President Donald J. Trump pic.twitter.com/z5EXQhw1xK
— The White House (@WhiteHouse) September 25, 2025
US President Donald Trump rolled out a huge new trade policy on Thursday, saying that the United States will place tariffs of 100 per cent or more on imported branded and patented medicine products from October 1. The action is specifically aimed at compelling drug manufacturing back to American shores and has serious implications for big foreign exporters, including Indian pharma companies.
Zero Tariff For ‘Made in America’
The tariff declaration, issued by Trump on his social media website Truth Social, unmistakingly connects exemption from the tax to local manufacturing.
“Beginning October 1st, 2025, we will be charging a 100% Tariff on any Branded or Patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” the former President wrote.
He further clarified the stringent conditions of exemption: “”IS BUILDING” will mean, “breaking ground” and/or “under construction.” There will thus be no Tariff on these Pharmaceutical Products if construction has begun. Thank you for your consideration of the same!”
Possible Blow To Indian Drug Exporters
Though Trump’s remark has worldwide relevance, the across-the-board tariff on patented medicines will directly affect Indian drug firms which sell branded, patented, or specialty drugs to the US market. India is one of the world’s largest suppliers of drugs, and a 100% tariff would seriously undermine the competitive edge of these high-value exports unless firms invest substantial amounts to set up US-based operations.
Broader Tariff Blitz
Pharma tariff is a part of a broader protectionist trade strategy unveiled by Trump. The declaration came along with new tariffs in several other industries, highlighting a protectionist trend in these sectors:
- 50 per cent duty on foreign kitchen cabinets and vanities for bathrooms.
- 30 per cent duty on upholstered furniture.
- 25 per cent duty on heavy trucks.
The new policy gives the world’s drug manufacturers a firm timeline: move their production into the United States or pay a prohibitively high tax on their patented drugs.
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