Trump Announces 100% Tariff on Imported Branded Pharmaceuticals, Adds Duties on Furniture and Heavy Trucks

September 26, 2025: In another tariff announcement by US President Donald Trump, 100% duties on branded pharmaceuticals, furniture, and heavy trucks will take effect starting October 1, 2025. The purpose of this duty is attributed to boosting American manufacturing and to safeguarding national security, as per the President. If a manufacturer has or is actively building a production plant in the US, such duties will be exempted.

What Has Been Announced

Branded or patented pharmaceutical products will face 100% tariffs on imports starting on October 1, 2025. Any company that has a production facility in the US or is ‘building’ a manufacturing facility there will be exempted from duties. There would not be any additional tariff if the construction has already started.

Reaction from Indian Markets

At 11:01 AM, the Nifty Pharma Index slipped by 1.81% to 21,579.15. The benchmark market indices, Nifty 50 (down 0.41%) and Sensex (down 0.48%), also exhibited selling pressure and an overall negative investor sentiment following the announcement.

Tariffs Across Categories

The U.S. has announced expanded tariffs effective October 1, 2025: 50% on kitchen cabinets, 30% on upholstered furniture, and 25% on heavy trucks made abroad. The move aims to curb import flooding and protect domestic manufacturers, such as Peterbilt and Mack Trucks. National security concerns also influenced the decision, with a probe into truck imports reinforcing the justification for tariffs.

Impact on Indian Drugmakers

The United States is the largest foreign market for the Indian pharma company, especially for affordable generic medicines. In the previous year, pharma companies exported medicinal products for more than $3.7 billion to American consumers. As the new measure targets branded and patented drugs, confusion persists regarding complex generic and specialty medicines.

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