26 Sep 2025 : US President Donald Trump is once again in the spotlight over his trade policies. This time, he has directly targeted the pharmaceutical industry by announcing a major decision against foreign pharma companies, a move that could impact many developing and developed countries, including India.
Trump declared on his social media platform Truth Social that starting October 1, 2025, the US will impose a 100% tariff on any branded or patented drug product if it is not manufactured in the United States. In other words, if a company does not set up a pharma manufacturing unit in the US, it will face this heavy tax.
Direct impact on pharma companies
This decision is a major blow to countries that export large volumes of pharmaceutical products to the US. For India, one of the world’s largest producers of generic medicines, this decision could pose not only economic but also strategic challenges.
Trump further clarified that if a company has actually begun manufacturing operations in the US, the tariff will not apply. “IS BUILDING” does not mean just planning; it must mean actual construction work at the site.
Tariffs on furniture and household goods
Trump’s aggressive tariff policy is not limited to the pharma sector. He also announced:
- 50% tariff on kitchen cabinets and bathroom vanities
- 30% tariff on upholstered furniture
- High tariffs on heavy trucks and other household products
According to Trump, foreign companies have oversupplied the US market, directly hurting local industries. He argued that tariffs are necessary to help America regain its manufacturing strength.
New tariff rates on several countries
Trump had also raised tariffs on multiple countries back in August, which are now in effect:
- India: 50% tariff
- Russia: Additional 25% penalty
- Brazil: 50% tariff
- South Africa: 30% tariff
- Vietnam: 20% tariff
- Japan and South Korea: 15% tariff
Return of America First?
Trump’s announcements are being seen as an extension of his old strategy of America First. He has often used tariffs as a weapon, whether during the trade war with China or by imposing duties on European products. While this new decision may boost the US pharmaceutical industry, it is expected to have a deep impact on the balance of global trade.
Summary:
Starting October 1, Donald Trump announced steep tariffs—100% on medicines and up to 50% on kitchen cabinets and trucks—raising concerns over trade tensions and economic impact.