Trump threatens 100% tariffs on branded drugs unless companies build U.S. plants by Oct. 1
President Trump announced a 100% tariff on branded/patented pharmaceutical products effective Oct. 1, 2025, unless companies are "BUILDING" U.S. pharmaceutical plants (defined as breaking ground or under construction); companies cited as already committing multibillion-dollar U.S. investments include Eli Lilly, AstraZeneca, Roche, GlaxoSmithKline and Johnson & Johnson. The drug threat accompanies 30–50% tariffs on furniture and cabinetry and a 30% levy on heavy trucks (and a 15% tariff on EU-origin branded drugs under a recent trade deal), and PhRMA warned such steep tariffs could undermine industry investment plans and divert dollars from U.S. manufacturing or R&D.
Economy
Health
Trade
📰 Sources (3)
U.S. to impose tariffs on pharmaceutical drugs, furniture and heavy trucks
New information:
- A 100% tariff on 'any branded or patented Pharmaceutical Product' announced by President Trump (with carve-out for companies 'breaking ground' or 'under construction' on U.S. plants).
- A 30% tariff on 'Heavy (Big!) Trucks' in addition to the previously reported 30%–50% furniture/cabinet levies.
- Effective date for the new tariffs stated as Oct. 1 and supporting economic context (2024 pharma imports ~$233 billion; Aug CPI 2.9% y/y).
Trump threatens 100% tariffs on drugmakers who aren't building U.S. plants
New information:
- Specifies the administration will impose a 100% tariff on branded/patented drugs starting Oct. 1, 2025 unless the company is "BUILDING their Pharmaceutical Manufacturing Plant in America" (defined as breaking ground or under construction).
- Names specific firms that have already committed multibillion-dollar U.S. manufacturing investments: Eli Lilly, AstraZeneca, Roche, GlaxoSmithKline, and Johnson & Johnson.
- Notes that under the administration's recent trade deal with the EU, U.S.-bound branded drugs from Europe face a 15% tariff and cites Ireland as accounting for about $50 billion of U.S. pharma imports last year.
- Includes a PhRMA statement (via Alex Schriver) warning tariffs could undermine industry investment plans and divert dollars from U.S. manufacturing or R&D.
Trump imposes 30% to 50% tariffs on some furniture, cabinetry
New information:
- Tariff rates: 50% on kitchen cabinets, bathroom vanities and 'associated products'; 30% on upholstered furniture.
- Effective date: October 1, 2025.
- Source/attribution: Announcement attributed to President Trump via a Truth Social post and reported by Axios as breaking news.