Shelf of pharmaceutical products.
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President Donald Trump announced Thursday that the U.S. will impose a 100% tariff on “all any branded or patented Pharmaceutical Product” entering the country from Oct. 1.
The measure will not apply to companies building drug manufacturing plants in the U.S., Trump added.
He said that the exemption covers projects where construction has started, including sites that have broken ground or are under construction.
“There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started,” Trump added in a post on Truth Social.
The announcement came as Trump also unveiled a 25% duty on heavy trucks and a 50% levy on “all Kitchen Cabinets, Bathroom Vanities, and associated products,” which will also start on Oct. 1.
In August, Trump told CNBC’s “Squawk Box” that planned tariffs on pharmaceuticals imported into the U.S. could eventually reach up to 250%, the highest rate he has threatened so far.
He said he will initially impose a “small tariff” on pharmaceuticals, but then in a year to a year and a half “maximum,” he will raise that rate to 150% and then 250%.
This is breaking news, please check back for updates.