Trump talks again: it's about a 100% tariff on pharmaceutical merchandise and other industries.

Introduction

The United States is at the forefront in every business sector on the worldwide stage. Especially in pharmaceutical innovation, they are investing heavily in the development of new drugs and treatments. Further, numerous leading pharmaceutical firms and biotech startups are based in the U.S., driving advancements in fields such as cancer therapy, gene treatment, and personalized healthcare. In 2024, the United States exported around $100.00 billion in pharmaceutical goods, positioning it among the leading global exporters. But suddenly, Donald Trump declared substantial tariffs on numerous products, commencing October 1st, 2025. A 100% tariff will be enacted on branded drugs unless firms start producing in the US. Moreover, the 50% tariffs on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks are intended to safeguard local industries. Such a decision could have an impact on the local economy or industrial revenue, along might have an impact on the global economic cycle.

 

 

Market Statistics:

• The Pharmaceuticals market is projected to yield the greatest revenue in the United States, reaching US$662.48bn by 2025.

 

• A few countries account for a large share of U.S. pharmaceutical imports. Ireland, Germany, and Switzerland are major suppliers. India is also a significant contributor.

 

• In July 2025, the United States exported $7.88B and imported $15.5B in pharmaceutical products, leading to a trade deficit of $7.6B. From June 2025 to July 2025, the exportation of pharmaceutical products from the United States fell by $1.37B (-14.8%), dropping from $9.25B to $7.88B. In that same timeframe, imports rose by $376M (2.49%), changing from $15.1B to $15.5B.

 

• The detailed insights of the United States pharmaceutical market: primarily export to China ($871M), Germany ($784M), the Netherlands ($764M), Canada ($692M), and Spain ($663M). In the same month, the United States brought in pharmaceutical products primarily from Ireland ($1.79B), Germany ($1.66B), Switzerland ($1.65B), Singapore ($1.25B), and India ($1.21B).

 

 

What is a tariff, and why did Trump increase such a tax?

A tariff is fundamentally a tax or duty levied by a government on goods and services that are brought into, or occasionally sent out to, other nations. In global commerce, a tariff raises the cost of imported goods and is collected by the customs agency in the destination country. Trump's strategy is based on the conviction that tariffs can revitalise American manufacturing, generate employment, and bolster national defence, even at the cost of temporary trade disputes or retaliatory actions from allies. His trade policy plan highlights a transition to a production-oriented economy, seeking to restore American industrial power and lessen dependence on international supply chains.

 

Point of View from Trump for the American pharmaceutical industry and its growth.

The United States is the biggest importer of pharmaceuticals globally and the second-biggest exporter. The nations with which the United States has the highest trade deficits in pharmaceutical goods are Ireland, Switzerland, Singapore, India, and Germany.  Recently, a key argument made by Trump is that imposing such a tariff would compel pharmaceutical companies to move production back to the U.S. He portrays reliance on imports for essential medications as a strategic vulnerability and views tariffs as a means to “bring the jobs back” while decreasing reliance on international supply chains. Trump could contend that the innovation in pharmaceuticals is expensive and hazardous, and that foreign manufacturers are profiting from research primarily financed in the U.S. The tariff might be presented as a means to adjust that imbalance: requiring companies to “contribute” if they wish to enter the U.S. market without local production. (Although he couldn't locate a direct quote that precisely supports this in the sources, this aligns with the reasoning behind tariffs in different sectors.) Besides, branded or patented medications are drugs marketed under commercial names and safeguarded by patents or other forms of intellectual property, which prevent generic competition until such protections expire. Trump claimed that these tariffs would encourage pharmaceutical companies to relocate their manufacturing plant to the American continent. He also stated that the tariffs will probably do little to relocate manufacturing to the U.S. because businesses already have strong operations in the nation. So, such taxation could help for steady growth in the pharmaceutical industry.

 

Taxation snapshot for bathrooms, kitchens and other industries.

 

Kitchen cabinets and bathroom vanities

Trump declared that the US will impose 50 % tariffs on kitchen cabinets and bathroom vanities. Although the government didn't offer a legal rationale for the tariffs, he seemed to overextend his authority as commander-in-chief by claiming on Truth Social that the taxes on imported kitchen cabinets were necessary for National Security and other reasons.

 

Upholstered furniture

Trump declared a 30% import tax on upholstered furniture arriving from abroad, starting and referring to national security concerns. He addressed that the tariffs on furniture were implemented because of the massive flooding of these goods into the United States, labelling it an unjust practice.

 

Key companies' revenue is slipping due to this Tariff

On a global stage, this tariff will change the economic cycle in the pharmaceutical and healthcare industry.

For instance, shares of Sun Pharmaceutical Industries, Lupin, Biocon, Natco Pharma, Laurus Labs, Gland Pharma, and IPCA Laboratories fell by over 3% each, while Zydus Lifesciences, Divi’s Laboratories, Ajanta Pharma, Granules India, Alkem Laboratories, and Mankind Pharma decreased by more than 2%, pulling the Nifty Pharma index down by 2.6%.

CDMO companies such as Divi's Laboratories, Cohance Lifesciences, Laurus Labs, and Neuland Laboratories serve innovators by providing APIs and intermediates, with approximately 35-40% of their business linked to the US and Europe. Biosimilars are also marketed under brand names, affecting Biocon (primarily manufactured in India); future competitors in the US pipeline consist of Dr Reddy’s Laboratories, Aurobindo Pharma, and Lupin as well.

 

Cold overtakes European Nations in the pharmaceutical industry.

US President Donald Trump has revealed a new set of tariffs, which includes a 100% tax on branded or patented drug imports starting Oct 2025, unless a firm is constructing a factory in the U.S. In reaction to Trump's recent statement, a spokesperson for the UK government remarked: They understand this will raise concerns for the industry, which is why they have been in active discussions with the US and will persist in this effort in the coming days. Some statistics for the pharma industry between these two countries.

• Europe exhibits a robust export orientation: the EU sends substantial quantities of medicinal and pharmaceutical goods beyond its borders, demonstrating its competitiveness in global trade.

 

• The U.S. is a major destination for those exports. Europe has a substantial trade surplus in pharmaceuticals; the U.S. trade deficit indicates that the U.S. purchases (imports) more from Europe than it exports there (in pharma).

 

• EU's importation of medicinal and pharmaceutical goods (outside EU) in 2024: €119.7 billion. The U.S. imports significant amounts of pharmaceutical products from several nations (Ireland, Germany, Switzerland, etc.)

 

• The United Nations reported that last year, the UK sent over $6bn (£4.5bn) in pharmaceutical goods to the US.

 

• Among the largest pharmaceutical firms in the UK, GlaxoSmithKline possesses US manufacturing facilities and recently committed to investing $30bn (£22bn) in research and production in the US within the next five years.

 

• AstraZeneca also operates facilities in the US and announced in July its intention to invest $50bn in the nation by 2030.

 

Beyond that, William Bain, the director of trade policy for the British Chambers of Commerce, addressed that: Top pharmaceutical firms in the UK have pledged substantial investment in the US, particularly in advanced manufacturing. So, this might provide a positive thought on future agreements between the nations.

 

Is their Indian pharmaceutical industry safe or a sideline for the Trump Tariff?

 

Asian Pharma insights:

Stocks of Asian pharmaceutical firms declined on Friday following U.S. President Donald Trump's announcement of new tariffs on furniture, heavy trucks, and pharmaceutical items.

The Topix Pharma Index dipped 1.47% after the announcement. Daiichi Sankyo and Chugai Pharma were among the firms that experienced losses, dropping 2.11% and 3.64%, respectively. Sumitomo Pharmaceuticals prolonged its declines, dropping 5.33%. Prominent South Korean pharmaceutical stocks such as Samsung Biologics and SK Bio Pharmaceuticals declined by 1.71% and 3.71%, respectively. Pharmaceutical companies listed in Hong Kong also declined. Alibaba Health Info Tech and JD Health were additionally part of the leading decliners, dropping 2.92% and 2.23%, respectively.

 

The Indian Pharmaceutical Sector and its tariffs impact

The US market represents just over a third of India's pharmaceutical exports, largely consisting of more affordable generic alternatives to well-known medications. Indian pharmaceutical exports to the US increased by 20%, reaching around $10.5 billion in fiscal 2025. Although most exports consist of generic medications, several major Indian pharmaceutical companies like Dr Reddy's, Sun Pharma, and Cipla also ship patented drugs to the US.

The recent wave of US tariffs appears to primarily focus on branded and patented medications, where global firms such as Pfizer Inc. and Novo Nordisk Inc. hold significant market share. Prominent Indian companies such as Cipla Ltd., Dr Reddy's Laboratories Ltd., and Lupin Ltd., among others, already possess manufacturing plants in the US. Another significant participant, Biocon, located in Bengaluru, has also launched its US manufacturing facility this month in Cranbury, New Jersey, through its fully owned subsidiary Biocon Generics Inc. Therefore, Biocon is expected to experience no effects from the full 100 per cent tariff. Further, Sun Pharma continues to be a significant exporter, which could influence this situation until it reveals its capital expenditure plans for the US.

 

Final Sum up

The recent U.S. tariffs, notably the 100% levy on name-brand medications, indicate a significant change in trade policy intended to compel international pharmaceutical companies to boost local manufacturing. Although Trump positions this as a drive for employment and supply chain stability, the action will disturb pharmaceutical trade patterns, strain connections with Europe and Asia, and put pressure on firms from India and the UK that depend significantly on U.S. markets. Indian companies and generic-focused players with established manufacturing in the U.S. may encounter minimal risks, whereas branded drug manufacturers, European exporters, and CDMOs reliant on international operations might experience significant revenue drops. In the near term, the tariffs will increase instability in global pharmaceutical and related sectors, possibly leading to trade conflicts; however, in the long term, they might boost U.S.-focused investments and alter international production approaches.

 

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