Overview

• President Donald Trump said the levy targets branded or patented pharmaceuticals and will not apply if a manufacturer has already broken ground or begun construction on a U.S. facility.
• New duties also include 25% on heavy-duty trucks, 50% on kitchen cabinets and bathroom vanities, and 30% on upholstered furniture, all starting October 1.
• The administration is invoking Section 232 national‑security authority for the pharma measure, and legal challenges to sweeping tariff powers are ongoing with a Supreme Court hearing scheduled in November.
• Markets sold off following the announcement, with Asian and Indian pharmaceutical shares sliding and India’s Nifty Pharma index down by more than 2% in early trading.
• Analysts flagged potential price pressures for U.S. patients and programs such as Medicare and Medicaid, while Indian exporters—who supply a large share of U.S. generics—face uncertainty over the tariff’s scope and implementation.