U.S. President Donald Trump has announced heavy tariff on imported medicines, heavy trucks, and household furniture, a move that will directly impact India’s pharmaceutical industry.
Trump declared on his social media platform Truth Social that branded or patented medicines not manufactured in the U.S. will now face a 100% tariff, effective October 1, 2025.
Following the announcement, shares of several major pharmaceutical companies in Asia, particularly India, dropped sharply. Trump clarified that Indian pharmaceutical firms would only be exempt from this tariff if they set up manufacturing plants within the United States.
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Key Details:
- India exports over $10 billion worth of medicines annually to the U.S., making it one of the hardest-hit countries.
- South Korea is also affected, while Australia—which exported $1.3 billion worth of medicines to the U.S. in 2024—criticized the decision strongly.
- The European Union pointed out that under the trade deal signed in July, tariffs on European pharmaceuticals cannot exceed 15%, describing it as an “insurance policy” for its companies.
- The UK has hinted at pressuring Washington to secure softer terms for British pharmaceutical exports.
In addition to medicines, Trump also announced:
- 25% tariffs on foreign heavy trucks, aiming to benefit American companies such as Peterbilt, Kenworth, Freightliner, and Mack Trucks. Following this, shares of Volvo (Sweden) and Daimler (Germany) dropped in Europe.
- 50% tariffs on home décor products and 30% on upholstered furniture, a serious blow to imports given that 60% of furniture sold in the U.S. in 2022 was imported. As a result, American retailers like Wayfair and Williams-Sonoma saw their stocks fall significantly.
Trump defended his decision, calling it a step taken under the umbrella of “U.S. national security.”
The Trump administration has already imposed a minimum 10% tariff on all imports, with additional levies on partners like Canada, Mexico, and China, citing national security, drug trafficking, and illegal immigration concerns.
It remains unclear how these new tariffs will align with existing trade policies and agreements.
