As of September 29, 2025, President Donald Trump’s newly implemented 100% tariff on branded or patented pharmaceutical products, effective from October 1, 2025, has sparked significant debate and uncertainty within the healthcare industry. Announced on September 26, 2025, this policy aims to incentivize drug manufacturers to establish production facilities within the U.S., with exemptions offered to companies complying with this requirement.

The move, detailed by Reuters and CNBC, follows a period of tariff exemptions for pharmaceuticals during Trump’s first term and comes amid a complex global drug supply chain, with U.S. pharmaceutical imports nearing $213 billion in 2024.

Experts, including those from AARP’s Public Policy Institute, warn of potential increases in prescription drug prices and market disruptions, particularly for generic drugs, while the policy’s broader impact remains unclear as trade partners and major drugmakers assess their responses.

The U.S. imports roughly 70-80% of its generic drugs and key ingredients, with China and India being major players. A 100 percent tariff could double the cost of imported drugs, potentially raising prices for consumers unless domestic production ramps up quickly. Critics warn of disruptions to the supply chain, especially for low-cost generics, which could exacerbate drug shortages. Supporters, however, believe it could spur long-term investment in U.S. manufacturing.

Industry and Expert Reactions: Pharmaceutical companies and analysts have expressed concerns about the feasibility of rapidly scaling domestic production. Building new facilities could take years, and higher costs might be passed on to patients.

https://www.aljazeera.com/news/2025/9/26/trumps-latest-100-percent-tariff-on-pharmaceuticals-what-we-know

aljazeera.com

Trump’s latest 100 percent tariff on pharmaceuticals: What we know

The US largely imports pharmaceutical products from India and Europe.