Shelf of pharmaceutical products.
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President Donald Trump announced Thursday that the U.S. will impose a 100% tariff on “any branded or patented Pharmaceutical Product” entering the country from Oct. 1.
The measure will not apply to companies building drug manufacturing plants in the U.S., Trump added.
He said that the exemption covers projects where construction has started, including sites that have broken ground or are under construction.
“There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started,” Trump added in a post on Truth Social.
The announcement came as Trump also unveiled a 25% duty on heavy trucks and a 50% levy on “all Kitchen Cabinets, Bathroom Vanities, and associated products,” which will also start on Oct. 1.
In August, Trump told CNBC’s “Squawk Box” that planned tariffs on pharmaceuticals imported into the U.S. could eventually reach up to 250%, the highest rate he has threatened so far.
He said he will initially impose a “small tariff” on pharmaceuticals, but then in a year to a year and a half “maximum,” he will raise that rate to 150% and then 250%.
The new duties follow the launch of fresh announced on Wednesday into imports of robotics, industrial machinery, and medical devices.
The latest probes by the Department of Commerce expand the list of goods that could face higher tariffs to include personal protective equipment such as surgical masks, N95 respirators, gloves and other medical consumables, including syringes and needles.
“Pharmaceuticals, such as prescription drugs, over-the-counter drugs, biologics, and specialty drugs, will not be covered under this investigation as those imports are being examined in a separate Section 232 investigation,” the Commerce Department said.
Any new duties resulting from the sector-specific probes would be stacked on top of Trump’s country-specific tariffs, though the European Union and Japan have reached agreements that could shield them from extra levies.
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