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What to know about Trump's new pharmaceutical tariff plan

10 9
28.09.2025

President Trump's new pharmaceutical tariff policy throws another wrench into an already increasingly complex drug supply chain, with experts calling for more clarity and details into the White House's new policy set to go into effect in less than a week.

In announcing that branded or patented drugs would be hit with 100 percent tariffs on Oct. 1, Trump also said drugmakers could escape the penalties if they have a pharmaceutical manufacturing plant for which ground has been broken, or is currently under construction.

It’s unclear how many companies can escape the tariffs under that rule, though many drug manufacturers have pledged billions in investments into the U.S. under pressure by the Trump administration.

This announcement exempts generic drugs, which account for the vast majority of prescriptions in the U.S.

Drugs produced in the European Union are also not covered by the new tariffs, though they are subject to a 15 percent tariff.

Health care lawyers said the new policy raises a number of question for those hoping to avoid the tariffs.

“What if you already have an existing US manufacturing facility? Are you exempted because you already have a domestic footprint in play, or must you be expanding that capacity in some way,” said Soumi Saha, a pharmacist, lawyer and senior vice president of government affairs at the health care improvement company Premier Inc.

“And if you assume that anybody with a U.S. footprint is exempted, it then begs the question, how many branded manufacturers have no U.S. footprint whatsoever and is that the true impact?”

Saha said........

© The Hill