Trump Imposes 100% Tariff On Drugs From Overseas

The restrictions will go into effect as early as October 1.

U.S. President Donald Trump has announced sweeping new tariffs, including a 100% duty on all patented and branded drugs imported into the country.

This is reported by Vloomberg.

The restrictions will take effect as early as October 1, 2025.

At the same time, Trump clarified on social media that the tariffs will not apply to those pharmaceutical products for which manufacturing facilities have already been or are being erected in the United States.

The White House thus wants to force multinational corporations to move drug production from Europe and Asia to America.

In addition, pharmaceutical companies have also received an ultimatum: by the end of September, they must voluntarily reduce prices for the U.S. government to the lowest international levels.

The news of this innovation has already caused the fall of Asian stock exchanges and particularly hard hit the shares of pharmaceutical companies in Japan, Australia and South Korea.

Who is under attack

Drug manufacturers who have not yet moved production to the United States. For example, the active ingredients for Ozempic and Wegovy (Novo Nordisk) are made in Denmark, and important steps in the production of Mounjaro (Eli Lilly) are made in Ireland.

Johnson & Johnson makes the immune drug Stelara in Switzerland, and the anti-cancer drug Darzalex in Denmark.

Bristol-Myers Squibb makes Opdivo primarily in Ireland and Switzerland.

Novartis supplies Cosentyx and Entresto from Switzerland.

These companies will have to prove that they are actually building factories in the US, otherwise their drugs could immediately double in price.

Who's safe

Many pharma giants have been actively investing in US production in recent months. Novo Nordisk, for example, is already building a plant in North Carolina, and Eli Lilly has announced four manufacturing sites.

Legal Mechanism

Trump is using Section 232 of the Trade Expansion Act, which allows tariffs to be imposed without congressional action if imports are deemed a threat to national security. The tool has previously been applied to steel, aluminum and automobiles.

The U.S. is expected to impose additional duties on imports of semiconductors, critical minerals, robotics and medical equipment in the coming weeks.

And starting next week, the U.S. will impose a 25 percent duty on imports of heavy trucks, 50 percent on kitchen cabinets and bathroom furniture, and 30 percent on upholstered furniture.

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