Trump Announces 100% Tariff on Branded Drugs

President Trump announced tariffs set to take effect October 1, 2025, including a 100% duty on branded or patented pharmaceutical imports (exempt if a company is “building” a U.S. plant, defined as having broken ground or being under construction), 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture and 25% on heavy trucks (the truck duties were tied to a Section 232 national-security rationale). The administration said the measures aim to onshore production, strengthen supply chains and protect national security. Major drugmakers have pledged U.S. investments — Eli Lilly announced roughly $11.5 billion in new facilities — but companies and analysts warn construction will take years and many projects may miss the October 1 cutoff. Health experts and analysts warned the 100% tariff could effectively double the landed cost of many medicines, risking price spikes, higher healthcare costs, hospital and pharmacy disruptions and added inflation; markets reacted negatively with shares of affected truck, furniture and foreign supplier firms falling. Observers also highlighted unresolved legal and trade-policy questions, including how the levies will interact with existing tariffs, exemptions, U.S.–China negotiations and WTO rules.