Trump announces 100% tariff on pharma imports; duties on trucks, furniture

US President Donald Trump on Thursday (local time) unveiled a sweeping new set of import tariffs, including a 100 per cent duty on branded and patented pharmaceutical products, effective October 1, 2025. The tariffs will not apply to companies that are actively building pharmaceutical manufacturing facilities in the US.

Taking to his social media platform Social Truth, Trump announced, “Starting October 1, 2025, we will be imposing a 100 per cent tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America. There will, therefore, be no tariff on these pharmaceutical products if construction has started.”

Broader tariffs on furniture, kitchen cabinets, and trucks

The new tariffs extend beyond pharmaceuticals. Trump announced:

50 per cent tariffs on kitchen cabinets and bathroom vanities

30 per cent tariffs on upholstered furniture

25 per cent tariffs on heavy-duty trucks

The heavy truck tariffs aim to protect US manufacturers such as Peterbilt, Kenworth, Freightliner, and Mack Trucks from international competition. Trump cited national security and economic reasons for the measures, calling out the “flooding” of foreign products into the US market.

Implications for Indian drugmakers

India is a major supplier of pharmaceuticals to the US. According to a report by Hindustan Times, Indian exports reached $3.6 billion (Rs 31,626 crore) in 2024 and $3.7 billion (Rs 32,505 crore) in the first half of 2025. Major Indian companies, including Dr Reddy’s, Sun Pharma, Lupin, and Aurobindo, rely heavily on the US generics market.

While Trump’s 100 per cent tariff is mainly aimed at branded and patented drugs, there is uncertainty about whether complex generics and speciality medicines from India might also be affected. Existing tariffs already impose a 50 per cent duty on some Indian exports, including a 25 per cent penalty related to Russian oil purchases.