Now, Trump's 100% pharma tariff shock

BITTER PILL | Oct 1 duties to double drug costs, hit furniture and trucks; India waits for fallout

- FPJ News Service

US President Trump on Friday announced sweeping new tariffs to take effect on October 1, declaring a 100% import tax on branded and patented pharmaceutical products, a 50% levy on kitchen cabinets and bathroom vanities, a 30% duty on upholstered furniture, and a 25% tariff on heavy trucks.

The measures, unveiled on Truth Social, mark Trump's most aggressive use of tariffs yet and highlight his belief that such taxes will reduce the US budget deficit while encouraging companies to build factories on American soil. But economists warned that the moves risk fuelling inflation and slowing growth at a time when households and businesses are still grappling with the effects of earlier measures.

“Starting October 1, we will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company is building their manufacturing plant in America,” Trump wrote.

He clarified that “building” would mean either “breaking ground” or “under construction,” effectively exempting firms with ongoing US projects. The announcement carries significant implications for India, which exported USD 8.7 billion worth of pharmaceuticals to the US in FY24. Four out of ten prescriptions in America are filled with Indian-made medicines.