Overview

• Effective October 1, the tariff targets branded or patented pharmaceuticals, with relief only for companies whose U.S. facilities are breaking ground or under construction.
• The tariff package also includes 50% duties on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy-duty trucks.
• Analysts say India’s largely generic exports face limited direct exposure, yet Indian pharma shares and regional health-care indexes fell on the news.
• Economists and health-policy experts warn branded drug costs could effectively double for imports, pressuring Medicare, Medicaid and household budgets as the Fed flags inflation risks from goods prices.
• Scope and legality remain uncertain, with questions over complex generics, biosimilars and APIs and with national-security justifications and existing trade frameworks likely to trigger legal challenges.