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Trump Imposes 100% Tariff on Imported Drugs Without U.S. Plants

Photo by Christina Victoria Craft / Unsplash

President Donald Trump announced that starting October 1, brand-name or patented pharmaceutical imports will face a 100% tariff unless the manufacturer is actively building a plant in the United States. Trump framed the move as a way to strengthen supply chains and push drugmakers to increase domestic production.

Pharmaceutical companies have already committed billions to new U.S. facilities. Eli Lilly recently unveiled plans for a $6.5 billion factory in Houston and a $5 billion site in Virginia. Still, experts warn that it may take years for these plants to be operational, limiting the immediate impact of tariffs.

The policy spares generic drug imports, shielding India, which supplies nearly half of U.S. generics. Industry leaders, however, cautioned that tariffs could raise costs and reduce investment in innovation. The administration is also considering broader import restrictions tied to national security.

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