President Donald Trump of the United States unveiled a huge new tariff structure on Friday for imported household goods and pharmaceutical products. He said that the tariff exemption for medications was directly linked to domestic manufacturing.
Branded drugs will have a 100% tariff.
Starting on October 1, 2025, the Trump administration would charge a 100% tax on all imported branded and patented drugs. Many people think this will have an effect on big pharmaceutical exporters, like India.
But the news makes it plain that international corporations should move their production to the U.S.
The Exemption Clause: Companies won’t have to pay the 100% tariff if they are “BUILDING their Pharmaceutical Manufacturing Plant in America.”
“Building” means “breaking ground” and/or “under construction,” according to President Trump in a post on Truth Social.
Existing Projects: He also said that companies that are currently building plants in the US will not have to pay the new levy. “There will be no Tariff on these pharmaceutical products if construction has started,” Trump wrote.
The change might have a big impact on the cost of healthcare in the U.S. In 2024, the U.S. brought in around $233 billion worth of drugs from other countries. Prices for some medicines could double, which could make healthcare, Medicare, and Medicaid costs go up a lot.
High Tariffs on Home Goods
The government also imposed wide tariffs on other consumer and industrial items, saying that the U.S. market has been “FLOODED” with foreign goods, which it sees as a “unfair practice.”
Starting on October 1, 2025, new tariffs will be in effect.
New Tariff Rate for Product Category
50% off kitchen cabinets, bathroom vanities, and other similar items
30% of the furniture is upholstered.
25% of Heavy Trucks
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These duties are likely to make things even more expensive in the industry, since furniture prices have already gone up a lot because of tariffs in the last year. The average cost of furniture in August was 4.7% higher than it was the year before.
The duties come after actions taken in August against dozens of nations, such as a 50% tax on Indian and Brazilian commodities and a 25% penalty for trading with Russia.