On Thursday, President Donald Trump announced another round of trade tariffs, the most significant of which is a 100% tax on pharmaceutical imports if the company is not in the process of building a manufacturing plant in the United States.
Trump announced on social media Thursday evening that he would impose a 100% tariff on all pharmaceuticals imported into the United States unless a “company IS BUILDING their Pharmaceutical Manufacturing Plant in America.”
“Beginning October 1st, 2025, we will impose a 100% tariff on any branded or patented pharmaceutical product, unless a company is building a pharmaceutical manufacturing plant in America.” “IS BUILDING” will be defined as “breaking ground” or “under construction.” There will be no tariff on these pharmaceutical products if construction begins. Thank you for paying attention to this matter!” Trump posted on social media.
The Census Bureau estimates that America will import nearly $233 billion in pharmaceutical and medicinal products in 2024. The prospect of some medicines’ prices doubling could shock voters, as health-care costs, as well as Medicare and Medicaid costs, may rise.
Trump has long argued that tariffs are the key to forcing businesses to invest more in domestic manufacturing. He has dismissed concerns that importers will simply pass on much of the tax burden to consumers and businesses through higher prices.
Despite mounting evidence to the contrary, the president continues to claim that inflation is no longer a problem for the US economy. The consumer price index has risen 2.9% in the last year, up from 2.3% in April, when Trump first announced a broad set of import taxes.
There is also no evidence that tariffs are creating factory jobs or increasing the number of manufacturing facilities being built. Since April, the Bureau of Labor Statistics reports that manufacturers have cut 42,000 jobs and builders have reduced their workforce by 8,000.
“There’s no inflation,” Trump told reporters on Thursday. “We’re having unbelievable success.”
Trump also announced additional tariffs of 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks beginning October 1.
Trump claimed that foreign manufacturers of furniture and cabinetry were flooding the US with their products, and that tariffs were necessary “for national security and other reasons.” The new cabinetry tariffs may increase costs for homebuilders at a time when many people looking to buy a home feel priced out due to a combination of housing shortages and high mortgage rates.
A federal appeals court ruled in August that Trump lacked the legal authority to impose sweeping tariffs, but his efforts to build a protectionist wall around the American economy remain in place for the time being. However, they did not immediately strike down the tariffs, giving his administration time to file an appeal with the Supreme Court.
