President Donald Trump on Thursday (September 25, 2025) sent shockwaves through the global pharmaceutical industry, declaring a sweeping 100% tariff on branded and patented drug imports starting October 1.
For India, the world’s top supplier of generics to the U.S., the exemption offers only partial relief. Indian pharmaceutical exports to America stand at around $20 billion annually, with Sun Pharma, Dr Reddy’s Laboratories, Cipla, Lupin and Aurobindo Pharma among the key players.
“Starting October 1, 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,” Trump stated on his social media platform.
He clarified that “IS BUILDING” refers to plants that have already broken ground or are under construction. Firms currently investing in U.S. facilities will not face the new tariff.
The announcement has unsettled the global pharmaceutical sector. By targeting only branded and patented medicines, the policy spares generics, which are lower-cost alternatives produced after patents expire.
Reaffirming his campaign promise, Trump reiterated his protectionist stance in a series of Trump Truth Social posts, writing: “America First! Make America Great Again!”
Alongside pharmaceuticals, Trump has announced a 50% Tariff on all Kitchen Cabinets, Bathroom Vanities, and associated products, starting October 1st, 2025. Additionally, we will be charging a 30% Tariff on Upholstered Furniture.
The reason for this is the large scale “FLOODING” of these products into the United States by other outside Countries.
Also He announced tariffs on other imports. A 25% duty on “heavy (big!) trucks” will also come into force on October 1, which he said was necessary to safeguard America’s “Great Heavy Truck Manufacturers from unfair outside competition.”
“Therefore, our Great Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions. We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!” Trump wrote.
However, sensex and Nifty slipped into the red at Friday’s opening as markets felt the impact after the announcement.
List of recent tariffs announced by Trump:
Pharmaceutical products: 100%
Kitchen cabinets, bathroom vanities and related products: 50%
Upholstered furniture: 30%
Heavy trucks: 25%
