Trump Unveils 100% Tariffs on Imported Pharmaceuticals

US President Donald Trump announced late Thursday that, starting Oct. 1, 2025, the United States will impose a 100% tariff on branded or patented pharmaceutical products that are not manufactured domestically.

In a post on TruthSocial, Trump stated that the measure will exempt companies already investing in US production. “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. ‘IS BUILDING’ will be defined as, ‘breaking ground’ and/or ‘under construction,’” writes Trump.

European Union Pushes Back, Citing Trade Deal

The announcement immediately sparked reactions in the European Union. Irish Deputy Prime Minister and Tánaiste Simon Harris emphasized that existing agreements protect EU pharmaceutical exports.

“We will be studying the impact of this announcement, which includes a number of exemptions, together with EU colleagues. The EU and US Joint Statement issued on 21 August made absolutely clear that any new tariffs announced by the United Statement on pharmaceuticals under its Section 232 investigation would be capped at 15% for pharma products being exported by the European Union. This remains the case and underlines again the value of the agreement reached last month,” says Harris.

Hours before responding publicly to Trump’s announcement, Harris met with US Secretary of Commerce Howard Lutnick in Washington, D.C. The meeting at the Department of Commerce focused on the dynamic economic, trade, and investment relationship between Ireland and the United States, as well as the implementation of the EU-US Framework on Reciprocal, Fair, and Balanced Trade agreed in July. Discussions included expanding the list of goods exempt from the baseline 15% tariff rate of particular interest to Ireland’s spirits and medtech sectors and addressing non-tariff barriers. They also reviewed the ongoing Section 232 investigations on pharmaceuticals and semiconductors, and the impact of expanding Section 232 measures on steel and aluminium, which affect Irish agritech manufacturers.

EU trade spokesperson Olof Gill reinforced this position, describing the July deal as an “insurance policy” against harsher measures. “This clear all-inclusive 15 percent tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators,” says Gill.

Industry Concerns Over Costs and Access

Industry leaders warn that the tariffs could severely disrupt global supply chains and limit patient access to critical medicines.

“Tariffs on medicine would create the worst of all worlds by increasing costs, disrupting supply chains, and preventing patients from getting life-saving treatment,” says Nathalie Moll, Director General, European Federation of Pharmaceutical Industries and Associations (EFPIA), to AFP.

In the United States, the Pharmaceutical Research and Manufacturers of America (PhRMA) expressed concern that the new policy could undermine recent investment momentum.

“PhRMA companies continue to announce hundreds of billions in new US investments thanks to President Trump’s pro-growth tax and regulatory policies. Tariffs risk those plans because every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or the development of future treatments and cures,” says Alex Schriver, Senior Vice President, PhRMA, in an email statement.

New US Investments in Focus

The tariff plan comes just days after Eli Lilly and Company revealed a US$6.5 billion investment to build a next-generation pharmaceutical manufacturing facility at Generation Park in Houston, Texas. The plant will produce active pharmaceutical ingredients (APIs) for treatments in cardiometabolic health, oncology, immunology, and neuroscience, and is expected to be operational within five years.

The facility is one of four new US sites Lilly plans to announce this year, reflecting growing pressure on multinational pharmaceutical companies to increase domestic production capacity.