Trump’s 100% Drug Tariff Blitz Exempts EU, Japan

President Trump's sweeping 100% tariff on branded pharmaceuticals, effective October 1, sent shockwaves through the industry—but exemptions for the EU, Japan, and companies investing in U.S. production softened the blow. Foreign pharma stocks showed resilience, with Novo Nordisk and Roche dipping marginally while Takeda Pharmaceutical gained. Market analysts suggest the MOVE was anticipated, with valuations already reflecting the policy shift.

The WHITE House clarified that trade deals with drug provisions override the tariff, capping EU rates at 15% and binding Japan to parity with other nations. The muted market reaction underscores foreign firms' existing U.S. expansion plans. This tariff gambit appears less a final measure than an opening salvo in broader negotiations.