San Francisco, CA – September 28, 2025 — In a sweeping move announced via social media, U.S. President Donald Trump said that beginning October 1, the United States will impose a 100% import tariff on branded or patented pharmaceuticals, unless the manufacturer is currently building a drug production facility in the U.S.
📌 Tariff Details & Exemptions
Trump clarified that the exemption applies to companies “IS BUILDING their Pharmaceutical Manufacturing Plant in America,” defining this as “breaking ground” or “under construction.” He did not elaborate on how large a plant must be or whether existing U.S. operations qualify.
🚑 Impact on Global Pharma & Drug Pricing
If enacted, the tariff could double the cost of many patented drug imports into the U.S., placing pressure on international drugmakers heavily reliant on U.S. markets. Some major pharma players, like Roche and Novartis, believe they will not be impacted due to ongoing U.S. investments and facility expansions.
🇮🇳 Indian Pharma—A Different Fate
Indian generics are largely expected to be spared, as the tariff specifically targets branded or patented drugs. Many Indian drug firms already maintain U.S. manufacturing or packaging units, positioning them to navigate the policy more smoothly.
⚖️ Market & Legal Uncertainty
Questions remain about enforceability, legal challenges, and how the exemption will be interpreted in practice. The move also raises broader issues around trade policy, innovation incentives, and access to medicines.
