Trump's Tariff Storm: Pharmaceuticals, Furniture, and More Face Heavy Duties

In a sweeping move to bolster domestic production, United States President Donald Trump declared on Friday the imposition of a 100% tariff on branded and patented pharmaceutical products unless the manufacturing companies have begun setting up production facilities in the U.S. The tariff, set to take effect on October 1, 2025, could majorly impact the global pharmaceutical supply chain, as India supplies significant portions of vaccines and generic medicines worldwide.

The Indian pharmaceutical industry's substantial role in global health is underscored by its projected exports to reach USD 130 billion by 2030. In the fiscal year 2025, India's drug exports hit USD 30 billion, buoyed by a March surge. More than 30% of these exports head to the U.S., dominated by major companies like Dr. Reddy's and Sun Pharma, which rely on the American market for up to half their revenue.

Besides pharmaceuticals, Trump's decision extends tariffs to a range of household goods, including a 50% tariff on kitchen cabinets and bathroom vanities, and a 30% tariff on upholstered furniture, signifying a broader shift in trade policy. This move signals not just a focus on national production but also a potential reshaping of international trade practices.