U.S. President Donald Trump has announced that all imported branded and patented medicines will attract a 100% tariff from October 1 unless the manufacturer sets up a production facility in the United States.
Making the declaration on Truth Social, Trump said, “From October 1, if a pharmaceutical company does not establish its manufacturing plant in the U.S., their branded or patented drugs will face a 100% tariff.”
The move is intended to encourage domestic drug production while also cutting down the federal budget deficit. Analysts, however, warn that the decision could deliver a significant blow to Indian pharmaceutical exporters, who rely heavily on the U.S. market. Trump clarified that companies already building plants in the U.S. will be exempt from the new tariff regime.
