Overview

• President Trump said the duty will apply to branded or patented pharmaceuticals, with no charge if a company has broken ground or is under construction on a U.S. plant.
• The move comes alongside new product-specific duties beginning Oct. 1: 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks.
• Generic drugs are largely outside the stated scope, and Indian exporters—heavy in generics—face limited near-term exposure, though Indian pharma shares fell as much as 2–5% on uncertainty.
• Experts warn the tariff could raise prices for branded medicines and strain supply chains, with potential budget impacts for Medicare and Medicaid noted by analysts.
• Pharmaceuticals remain under a separate Section 232 investigation, and the Supreme Court is set to consider the administration’s use of emergency trade powers in a related case.