Trump Hits Imported Drugs with 100 Percent Tariffs

(MENAFN) The Trump administration on Thursday announced sweeping new tariffs on imported branded and patented pharmaceuticals, escalating its push to shift drug manufacturing back to U.S. soil.

Effective October 1, a 100% customs tariff will apply to any branded or patented drug produced abroad, unless the manufacturer has already begun construction of a domestic facility. The White House framed the move as a national security measure and part of a broader strategy to reduce reliance on foreign medical supply chains.

“The drugs that are manufactured outside the US will face this exorbitant rate. Any branded or patented pharmaceutical product will face the 100% tariff if the manufacturing company has not already broken ground to begin establishing a US production plant,” President Donald Trump said in a statement.
The policy follows an April investigation by the U.S. Commerce Department, which launched a national security review into pharmaceutical imports. The administration cited vulnerabilities exposed during recent global disruptions as a key factor behind the move.

U.S. Imports Over $200 Billion in Drugs
Last year, the United States imported pharmaceutical products worth $212 billion, according to the Observatory of Economic Complexity (OEC), placing them as the fifth-largest import category. Meanwhile, pharmaceutical exports from the U.S. totaled $94.4 billion, the data showed.

Other federal data from the Commerce Department listed the total value of imported medical and pharmaceutical goods at $233 billion in 2024, compared to $82.8 billion in exports.

The top five countries supplying pharmaceutical imports to the U.S. included Ireland ($50.3 billion), Switzerland ($19 billion), Germany ($17.1 billion), Singapore ($15.3 billion), and India ($12.5 billion). On the export side, the largest destinations were China, the Netherlands, Japan, Germany, and Canada.

While most imported medicines are generic—such as ibuprofen, aspirin, and various antibiotics—the bulk of branded and patented drugs are typically manufactured domestically or within the European Union.

Tariffs Tied to Security, Supply Chains
The administration has long signaled its intention to tax pharmaceutical imports as part of a multi-pronged strategy to onshore drug production. Officials argue that domestic manufacturing is vital not only for job creation but also for ensuring stable access to life-saving medications during emergencies.

In August, Trump foreshadowed Thursday’s announcement, stating: “The administration would initially impose low tariffs on drug imports but then raise it to 150% within a year, or at most 18 months, and then to 250% to force manufacturers into relocating factories to the US or face jaw-dropping rates.”

The White House maintains that higher tariffs will incentivize companies to break ground on U.S. manufacturing plants, helping the country regain control over critical medical supplies.

The tariff hike is expected to prompt sharp responses from multinational drugmakers and could trigger trade tensions with key allies who export pharmaceuticals to the United States.

MENAFN28092025000045017169ID1110120672