US President Donald Trump has announced a new set of tariffs that will come into force on October 1, targeting a wide range of imported products. The move includes imposing 100 per cent duties on branded pharmaceuticals, alongside tariffs on furniture, heavy-duty trucks, and home fittings. The decision marks another sharp escalation in Trump’s protectionist trade policies.
From the start of October, imported branded drugs will face a steep 100 per cent duty, while heavy-duty trucks will carry a 25 per cent tariff. Kitchen cabinets and bathroom vanities will attract a 50 per cent duty, and upholstered furniture will see tariffs rise to 30 per cent.
These measures are expected to affect billions of dollars’ worth of trade, given the US’ reliance on imports for household goods and pharmaceuticals.
Do the tariffs apply to trade partners with deals?
The United States maintains agreements with key trade partners, including Japan, the European Union, and the United Kingdom, which set upper limits on tariffs for specific industries.
Under these deals, tariffs on products such as cars, semiconductors, and pharmaceuticals are capped. This means the latest tariffs may not exceed agreed levels for these partners, reported Reuters.
For instance, in July, the White House confirmed that the EU agreed to a 15 per cent tariff cap on autos, pharmaceuticals, and semiconductors. Similarly, a September statement clarified that Japan would receive treatment in line with EU products.
How Will Trump’s Tariffs Impact India?
The US represents a critical export market for Indian drugmakers, especially in the generics and affordable medicines segment. Following Trump’s tariff announcement, attention has turned to companies such as Aurobindo Pharma, Gland Pharma, Lupin, Cipla, and Dr Reddy’s, which generate between 30 and 50 per cent of their revenues from the American market.
India’s pharmaceutical sector is a global leader, supplying more than half of the world’s vaccines, nearly 40 per cent of US generics, and around a quarter of the medicines consumed in the UK.
Pharma exports hit a record $30 billion in FY25, with March alone recording a 31 per cent year-on-year surge. In August 2025, exports rose 6.94 per cent from a year earlier, climbing from $2.35 billion in 2024 to $2.51 billion.
In FY24, outbound shipments totalled $27.9 billion, with the US accounting for 31 per cent ($8.7 billion or Rs 77,231 crore). During the first half of 2025, India exported $3.7 billion (Rs 32,505 crore) worth of pharmaceutical goods.
A report by IQVIA highlighted that Indian companies supplied 47 per cent of all generic prescriptions filled in the US and 15 per cent of biosimilars. “Indian companies supplied 47 per cent of all generic prescriptions filed in the US and 15 per cent of the volume of biosimilars,” it said.
A 100 per cent tariff could sharply raise the price of Indian branded or patented medicines in the US, reducing competitiveness and squeezing margins. This might even force some manufacturers to scale back product lines. Investors have already reacted nervously, with the Nifty Pharma Index and shares of Sun Pharma, Dr Reddy’s, Cipla, and Aurobindo coming under pressure in previous rounds of tariff threats.
Adding to the uncertainty, Trump earlier signalled that tariffs on pharmaceuticals could rise to 250 per cent over time, starting with smaller levies and gradually increasing to 150 and then 250 per cent.
What does this mean for China?
China, one of the US’s largest trade rivals, remains central to the tariff debate. In August, Washington and Beijing reached a temporary truce, preventing steeper tariffs for 90 days.
Until November 10, Chinese exports face a 30 per cent tariff, while US goods entering China are taxed at 10 per cent. It remains uncertain whether Trump’s latest measures will be layered on top of existing tariffs against China or treated separately. The White House has not provided clarity on this matter.
Data from industry publication Furniture Today reveals that in 2024, the US imported $25.5 billion worth of furniture, with about 60 per cent of shipments coming from Vietnam and China. This indicates that the furniture tariffs could disproportionately affect these two countries.
Legal challenges and the Supreme Court factor
Another layer of complexity comes from legal proceedings. On September 9, the US Supreme Court agreed to hear a case challenging the legality of Trump’s global tariffs.
This has raised questions over whether the latest measures will withstand judicial scrutiny. Oral arguments are scheduled for November5 , and the ruling could determine how far the executive branch can go in imposing unilateral trade restrictions.
Why does this matter?
The imposition of fresh tariffs highlights the administration’s shift towards stronger legal frameworks to justify its trade actions. If enforced, the new duties could significantly reshape import dynamics in the US market, particularly in pharmaceuticals and household goods. At the same time, pending judicial review leaves a cloud of uncertainty over their future implementation.
As the US heads into the last quarter of the year, these tariffs are poised to test both diplomatic relations with trade partners and the resilience of American consumers, who may see higher prices across a range of everyday goods.
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