Trump Expands Tariffs on Pharmaceuticals and Industrial Goods, Exempts Domestic Drug Manufacturers

President Donald TRUMP has announced a new wave of tariffs targeting pharmaceuticals, heavy trucks, and household goods, set to take effect October 1. The measures include 100% levies on branded drug imports but exclude generic medications and companies building U.S. production facilities.

The policy escalation reflects Trump's continued focus on trade as an economic lever, with kitchen cabinets, bathroom vanities, and upholstered furniture also facing new duties. Market reactions to similar measures have historically been volatile, underscoring the challenges of pricing in trade policy shifts.

Pharmaceutical stocks may see particular scrutiny as the FDA reports generics comprise 90% of U.S. prescriptions. The exemptions suggest a strategic carve-out for companies committing to domestic manufacturing, potentially reshaping supply chains beyond immediate price effects.