""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," the president said on social media. "'IS BUILDING' will be defined as, 'breaking ground' and/or 'under construction.' There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started.""
"The bad news: the drug tariffs will be "a meaningful commercial hit for US consumers," according to Oxford Economics' analyst Louise Loo. Exporters in China, Vietnam, and Malaysia will also be affected by a separate Section 232 probe that Trump ordered into whether the medical products they supply represent a national security vulnerability. The good news: There are several loopholes in Trump's proposal that mean the impact of the new taxes may be limited."
"This morning, Asian drug companies saw their market caps trimmed as traders bailed out of foreign drug stocks. "Investors got a fresh reminder about the trade war, and the impact has already been evident in Asian markets. For instance, pharmaceutical companies have been among the worst performers this morning in Japan's Nikkei (-0.46%), with losses for Chugai Pharmaceutical (-5.12%) and Sumitomo Pharma (-5.21%)," Jim Reid and the team at Deutsche Bank told clients today."
President Trump announced a 100% tariff on imported branded or patented pharmaceuticals effective October 1, 2025, with an exemption for companies that are "building" U.S. manufacturing plants (defined as breaking ground or under construction). Generic drugs are excluded from the tariff. Analysts warn the tariffs will be a meaningful commercial hit for U.S. consumers and could affect exporters in China, Vietnam, and Malaysia through a Section 232 probe into medical-product national security risks. The tariff announcement prompted marginal gains in U.S. pharma stocks but sharp losses in Asian drug shares, including significant selloffs among Japanese firms.
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