Countdown to October 1: Trump’s 100% Pharma Tariffs Threaten Global Drug Supply, Raise Costs

The global pharmaceutical industry is on high alert as new US tariffs, announced by former President Donald Trump, are set to take effect on October 1, 2025. This imminent policy change will impose a steep 100% levy on imports of branded or patented pharmaceutical goods, a move that could significantly reshape global trade dynamics and drug accessibility.

Trump, who recently returned to office, made the announcement via social media late on Thursday, revealing a critical exemption: companies actively “building their Pharmaceutical Manufacturing Plant in America” will be spared the tariffs. This definition, specified as “breaking ground” or “under construction,” aims to incentivize domestic production. Generic drugs are also exempt from the new duties.

The sudden nature of the announcement has left many details unclear, sparking confusion among industry leaders. Deborah Elms, head of trade policy at the Hinrich Foundation, highlights the ambiguity, particularly regarding the distinction between branded and generic drugs, and what exactly qualifies a company for the “building in America” exemption. She suggests a scramble among pharma executives to initiate construction to avoid the tariffs.

While some analysts, like Neil Shearing of Capital Economics, believe the impact might be less severe than it appears due to existing US production plans by major firms like Eli Lilly and AstraZeneca, concerns remain. The EU, which accounts for approximately 60% of US pharma imports, could face substantial disruption, despite earlier indications of a 15% tariff cap in a US-EU trade agreement. Ireland’s Minister for Foreign Affairs and Trade, Simon Harris, is reportedly “studying the impact.”

Industry bodies, such as the European Federation of Pharmaceutical Industries and Associations, warn that these tariffs will “increase costs, disrupt supply chains and prevent patients from getting lifesaving treatments.” Experts also anticipate higher costs for US consumers, with Elms stating patients are about to “pay an awful lot more money” and face “access issues.” The move has already seen shares in Asian and European pharma companies decline, underscoring the immediate apprehension across the global market.

阅读中文版 (Read Chinese Version)

Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.