Drugmakers Push US Expansion After Trump’s 100% Pharma Tariff Threat

President Trump announced a 100% tariff on imported branded or patented pharmaceutical products, effective October 1, 2025, unless manufacturers are building or expanding production facilities in the United States123.

Companies that have broken ground or have manufacturing plants under construction in the US are exempt from the tariff123.

Major drug companies, such as Roche (through Genentech) and Novo Nordisk, have responded by investing billions in new or expanded US manufacturing facilities. For example, Genentech began work on a $700 million plant in North Carolina in August 20252.

Industry analysts and companies highlight the tension between this tariff and other US policy goals, noting that tariffs could increase costs, disrupt supply chains, and potentially raise drug prices for patients2.

Generic drugs are not subject to the new tariff, offering relief since over 90% of US prescriptions are for generics that rely heavily on imports26.

Trump's tariff announcement follows executive orders aimed at boosting domestic production of critical medicines and streamlining US pharmaceutical manufacturing approvals1.

There is a temporary pause on implementing the tariff, as of October 1, 2025, to allow negotiations with pharmaceutical companies and finalize the necessary legal documents1.

Sources:

1. https://www.bakerdonelson.com/president-trump-and-white-house-announce-new-overseas-pharmaceutical-tariff

2. https://www.pharmaceutical-technology.com/news/drugmakers-point-to-us-expansion-plans-amid-trumps-100-drug-tariff/

3. https://www.statnews.com/2025/09/25/trump-pharma-tariffs-us-manufacturing-most-favored-nations/

6. https://www.healthcarefinancenews.com/news/trump-threatens-drugmakers-100-tariffs