President Donald Trump announced on Thursday that beginning October 1, the United States will impose a 100% tariff on all imported branded and patented pharmaceutical products. This measure will only be waived for companies that have already initiated or are actively constructing drug manufacturing facilities within the United States.
Trump stated on Truth Social that “there will, therefore, be no tariff on these pharmaceutical products if construction has started,” indicating that companies with ongoing or planned U.S. manufacturing projects would be exempt from the tariff.
This announcement comes in line with Trump’s prior commitments to apply tariffs on various imported goods. Earlier, he proposed a 25% tariff on heavy trucks and a 50% tariff on kitchen cabinets, bathroom vanities, and related products, all set to take effect on October 1 as well.
In August, Trump suggested during an interview with CNBC’s Squawk Box that tariffs on drug imports could potentially increase dramatically, reaching as high as 250%. He explained that the initial tariffs would be “modest,” but over the course of a year to a year and a half, rates could climb up to 150%, and eventually hit the 250% maximum he has threatened.