Washington, D.C. – September 28, 2025
The White House announced on Sunday that beginning October 1, 2025, the U.S. government will impose a 100% tariff on all branded or patented pharmaceutical products unless the company is actively building a manufacturing plant in the United States.
President Donald J. Trump made the declaration on his official account, emphasizing that pharmaceutical companies must demonstrate they are “IS BUILDING” a plant in America. The definition provided for “IS BUILDING” includes companies that have either broken ground or are currently under construction with a U.S.-based pharmaceutical manufacturing facility.
This means that companies already in the process of establishing domestic operations will be exempt from the tariff, while those relying solely on overseas manufacturing will face steep import costs.
The administration framed the policy as a step to strengthen domestic drug production, reduce reliance on foreign supply chains, and encourage pharmaceutical investment within U.S. borders.
“This will bring critical jobs back to America and ensure our people are not dependent on foreign countries for life-saving medicines,” President Trump said.
The move is expected to have wide-ranging effects on the global pharmaceutical industry, potentially reshaping supply chains, drug prices, and market availability. Critics, however, warn that sudden tariffs of this magnitude could lead to short-term drug shortages and significantly increase costs for patients and healthcare providers.
Industry leaders and trade groups are anticipated to issue statements in the coming days as companies evaluate how the tariffs may affect their operations.
“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America…” – President Donald J. Trump pic.twitter.com/z5EXQhw1xK
— The White House (@WhiteHouse) September 25, 2025