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    More tariffs by Trump: Branded pharma hit with 100% duty, and the list doesn’t end there

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    By Martin Shwenk Leade

    Copyright indiatimes

    More tariffs by Trump: Branded pharma hit with 100% duty, and the list doesn't end there

    US President Donald Trump has announced a new round of tariffs, slapping a 100% duty on pharmaceutical drugs from October 1, unless companies set up manufacturing plants in the United States.Additionally, the US President has announced a 50 per cent duty on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture and 25 per cent on heavy trucks starting on October 1.“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump wrote. “There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started.”Asian stocks fell on news of the tariffs, with shares in Japan, Australia and South Korea all opening lower, while S&P 500 futures pared earlier gains. Asian pharmaceutical stocks slumped. The posts on his social media site on Thursday showed that Trump’s devotion to tariffs did not end with the trade frameworks and import taxes that were launched in August, a reflection of the president’s confidence that taxes will help to reduce the government’s budget deficit while increasing domestic manufacturing. But the additional tariffs risk intensifying inflation that is already elevated, as well as slowing economic growth, as employers getting acclimated to Trump’s previous import taxes grapple with new levels of uncertainty.Live EventsYou Might Also Like:Trump slaps more tariffs: Check full list of new items that will attract more duties here”We have begun to see goods prices showing through into higher inflation,” Federal Reserve Chair Jerome Powell warned in a recent news conference, adding that higher costs for goods account for “most” or potentially “all” of the increase in inflation levels this year.Trump said on Truth Social that the pharmaceutical tariffs would not apply to companies that are building manufacturing plants in the United States, which he defined as either “breaking ground” or being “under construction”. It was unclear how the tariffs would apply to companies that already have factories in the US.In 2024, America imported nearly USD 233 billion in pharmaceutical and medicinal products, according to the Census Bureau. The prospect of prices doubling for some medicines could send shock waves to voters as health care expenses, as well as the costs of Medicare and Medicaid, potentially increase.Trump said that foreign manufacturers of furniture and cabinetry were flooding the United States with their products and that tariffs must be applied “for National Security and other reasons”. The new tariffs on cabinetry could further increase the costs for homebuilders at a time when many people seeking to buy a house feel priced out by the mix of housing shortages and high mortgage rates.What would be the impact on Indian drug manufacturers?India remains one of the largest suppliers of medicines to the U.S. In 2024, India’s pharmaceutical exports were valued at USD 12.72 billion, making it the country’s largest industrial export sector. Indian pharmaceutical companies play a crucial role in the U.S. healthcare system. In 2022, they accounted for four out of every ten prescriptions filled in the U.S. According to reports, medicines from Indian firms saved the U.S. healthcare system USD 219 billion in 2022 alone, and USD 1.3 trillion between 2013 and 2022. Over the next five years, generics from India are projected to deliver an additional USD 1.3 trillion in savings.Add as a Reliable and Trusted News Source Add Now!
    Amid tariff pains, India has been reportedly seeking to boost drug exports to semi-regulated markets in Africa, Latin America and Southeast Asia to reduce its dependence on the U.S., where tariff concerns pose risks, officials from a government-backed trade body told Reuters. The Pharmaceuticals Export Promotion Council of India (Pharmexcil) also plans to push for sales of finished goods to China to bridge the trade deficit, the officials said. The Indian industry imports more than 60% of its raw materials and active pharmaceutical ingredients from China.(You can now subscribe to our Economic Times WhatsApp channel)

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    (You can now subscribe to our Economic Times WhatsApp channel)Read More News onpharmaceutical drugskitchen cabinetspharmaceutical tariffsfurniture import taxesheavy trucks import taxesFederal ReserveCensus Bureaupharma tariffs(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

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