Trump Announces 100% Drug Tariff, EU Exempt

President Trump announced a 100% tariff on branded and patented pharmaceutical imports that is set to take effect Oct. 1, 2025, exempting generics and companies that are breaking ground on or building U.S. manufacturing plants. The administration has not clarified key implementation details — including whether active pharmaceutical ingredients or only finished drugs are covered and how “breaking ground” will be judged — prompting warnings about supply‑chain disruption, patient access and potential legal challenges. U.S. officials signaled that medicines from the EU will be exempt and that the administration will continue to honor a 15% tariff cap on EU imports, easing some European concerns. The announcement has accelerated billions of dollars in planned U.S. investments from domestic and foreign drugmakers (including Eli Lilly, Johnson & Johnson, GSK, AstraZeneca, Roche, Novartis and Sanofi) and lifted U.S. pharma stocks while pressuring some overseas firms. Analysts warned of wider economic fallout for export‑dependent countries such as Switzerland, and trading hubs like Singapore said they were monitoring for knock‑on effects to affordability and access.