Trump imposes 100% tariff on branded drugs with US plant exemptions

President Donald Trump announced on Thursday that the United States will impose a 100 percent tariff on imported branded and patented pharmaceutical products beginning October 1, but said companies would be exempt if they are building manufacturing facilities in the United States. The president posted the policy on social media, saying, "Starting October 1st, 2025, we will be imposing a 100 per cent Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America," and defined building as having broken ground or being under construction.

A White House official clarified Friday that the levy will not apply to countries that already have negotiated trade provisions covering drugs with the United States. Under framework agreements, duties on European Union pharmaceuticals will be capped at 15 percent, and Japanese shipments will be charged the rate specified in its pact, the official said. The official added that companies that have announced plans to construct U.S. plants may qualify for exemptions while the Commerce Department reviews and approves their projects. The official also said that the United...