Donald Trump slaps 100% tariff on branded drugs import from October 1

Mangalore Today News Network

US, Sep 26, 2025: United States President Donald Trump on Friday announced a fresh wave of tariff on products like the branded or patented drugs, which are not made in the US and imported into the country will face a 100 per cent tariff starting October 1, 2025.

However, he said that the companies which are building facilities in the US will be exempted from the fresh tariff. Trump announcing the decision to slap tariff on his Truth Social defined this as companies either "breaking ground" or being "under construction".

Many large Indian pharma companies derive between 40 - 50 per cent of their total revenue from the US market, according to reports.

Thus, imposing tariffs on the pharmaceutical Industry is likely to have a direct impact on the Indian pharma companies, as nearly 40 per cent of India’s total pharma exports are directed to the US market, according to a report by SBI Research.

It was reported earlier that even 50 per cent tariff on export of pharmaceutical products will affect the earnings of the Indian pharmaceutical companies by 5-10 per cent.

Around 40 per cent of India’s pharmaceutical exports were directed to the United States in FY25 and India’s share in the US’s total pharma imports stood at 6 per cent in 2024.

Which are the other products affected by fresh wave of US tariff?

President Donald Trump on Thursday also slapped a fresh round tariffs on goods like trucks and kitchen cabinets. While a 25 per cent tariffs was announced on heavy-duty trucks, Trump also said he would start charging a 50 per cent tariff on kitchen cabinets and bathroom vanities and a 30 per cent tariff on upholstered furniture. All new tariffs will take effect from October 1.

The new actions are seen as part of the Trump administration’s shift to better-established legal authorities for its tariff actions, given the risks associated with a case before the Supreme Court on the legality of his sweeping global tariffs.

The US Supreme Court on September 9 agreed to decide the legality of Trump’s sweeping global tariffs, setting up a major test of one of his boldest assertions of executive power that has been central to his economic and trade agenda.