Trump's 100% Pharmaceutical Tariffs: Global Impact on Countries and Companies

US President Donald Trump has created shockwaves throughout the global pharmaceutical industry with his announcement of 100-percent tariffs on all branded, imported pharmaceutical products, unless companies establish manufacturing facilities within the United States.

With the implementation deadline merely five days away, analysts are urgently assessing which nations, companies, and medications might face impact from these stringent trade measures.

Despite lingering uncertainties, some exemptions appear to exist. The European Union claims that a previous trade agreement protects the bloc from these impending tariffs.

Trump declared late Thursday that he would impose a 100-percent tariff on "any branded or patented Pharmaceutical Product" unless companies have initiated construction on manufacturing facilities by October 1. This statement suggests generic medicines—more affordable versions of drugs produced after patents expire—will be exempt from these tariffs.

Neil Shearing, an economist at Capital Economics, noted this exemption's limited effectiveness since "90 percent of US drugs consumption volumes go toward generic drugs," yet they represent "just 10 percent or so of spending values."

Kathleen Brooks, research director at XTB, explained that "most of the big pharma producers already produce their drugs for the American market in the US." However, numerous popular exceptions exist—such as the bestselling weight-loss medications Wegovy and Mounjaro—along with certain cancer treatments, all manufactured in Europe.

Last year, the United States imported nearly $252-billion worth of pharmaceutical products, making pharmaceuticals the second-largest import category by value after vehicles, according to Department of Commerce data.

The EU stated Friday that a trade agreement finalized with the US in July provides protection for the bloc. "This clear all-inclusive 15 percent tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators," EU trade spokesman Olof Gill affirmed.

Tariffs on medicine "would create the worst of all worlds" by increasing costs, disrupting supply chains, and preventing patients from accessing life-saving treatments, warned Nathalie Moll from the European Federation of Pharmaceutical Industries and Associations.

Angel Talavera from Oxford Economics indicated that while the July trade deal should theoretically protect EU companies, the situation remains "far from clear." Switzerland—home to pharmaceutical giants Roche, Novartis, and AstraZeneca—likely faces the highest risk because the country isn't an EU member.

Denmark, where Ozempic and Wegovy producer Novo Nordisk significantly impacts the national economy, also faces potential threats from these tariffs.

The pharmaceutical sector in Ireland—whose exports to the US represent approximately 12 percent of GDP, according to Shearing—was among European groups calling for urgent discussions to prevent the imminent tariffs.

A British government spokesperson stated that the UK was "actively engaging with the US and will continue to do so over the coming days."

In Asia, Japan and South Korea appear protected by existing trade agreements, while India primarily exports generic drugs, according to Louise Loo at Oxford Economics. "Singapore, focused on high-value patented drugs, faces the greatest risk," she added.

Trump previously threatened even steeper tariffs of 200 percent on pharmaceuticals in July. Seeking protection from Trump's protectionist policies, pharmaceutical giants have announced approximately $300 million in US investments in recent months.

"Although many pharma companies have pledged to build plants in the US, construction may not have started yet, as these plants are complex to build," Brooks observed. However, Trump clearly defined building as "breaking ground" on construction sites.

Swiss pharmaceutical giant Novartis announced Friday that "we have ongoing construction and expect to announce five new sites to be under construction before end of year." A spokesperson for Bayer stated the German company was "assessing the situation." Other major pharmaceutical firms contacted for comment have yet to respond.