Overview

• Companies can avoid the levy only if they have begun building U.S. manufacturing facilities, with the White House defining eligibility as construction already underway.
• The package also imposes 50% tariffs on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks made outside the United States.
• Industry response split: EFPIA warns higher costs, disrupted supply chains and risks to patient access, while PhRMA says tariffs jeopardize planned U.S. investments.
• Drugmakers have raced to expand stateside capacity, including new multibillion‑dollar plants announced by Eli Lilly, though analysts note onshoring timelines can span years.
• Markets showed immediate strain with declines in some European pharma shares, economists flagged inflation risks, and key details remain unsettled as the Section 232 review and potential partner exemptions are still pending; generics are reported to be excluded for now.