Donald Trump Tariff: Once again, US President Donald Trump has dropped a tariff bomb. He has announced a 100% tariff on branded medicines. This tariff will come into effect on October 1, 2025. This tax will not be imposed on companies setting up their own pharmaceutical plants in the US. Announcing this, Trump said, "From October 1, we will impose a 100% tariff on branded or patented medicines, except for those companies setting up their own pharmaceutical plants in the US. This tariff will cause the greatest harm to those countries that export the most pharmaceutical products to the US."
It should be noted that the US President had previously imposed a 50% tariff on India. This tariff came into effect on August 27. This has increased the cost of exporting Indian products such as clothing, gems, jewelry, furniture, and seafood. However, medicines were excluded from this tariff. Now, a 100% tariff has been announced on branded or patented medicines. This will impact Indian pharmaceutical companies, as India exports 30% of its medicines to the US.
India is the largest exporter of generic medicines to the US. In 2024, India shipped medicines worth approximately $8.73 billion (approximately Rs. 77,000 crores), representing approximately 31% of India's total pharmaceutical exports. Approximately 4 out of every 10 prescriptions written by doctors in the US are manufactured by Indian companies.
According to a report, the US healthcare system could save $219 billion in 2022. This savings was $1.3 trillion between 2013 and 2022. Major Indian pharmaceutical companies, such as Dr. Reddy's, Sun Pharma, and Lupin, sell not only generic medicines but also some patented medicines.
50 percent tariff on certain kitchen items
In another post, Trump stated, "We will impose a 50 percent tariff on kitchen cabinets, bathroom vanities, and related products starting October 1, 2025. Additionally, a 30 percent tariff will be imposed on furniture. The primary reason for this is that other countries are exporting such products to the United States in large quantities. This is unfair, but we must do so for national security." 25 Percent Tariff on Heavy Trucks
Trump said, "To protect our heavy truck manufacturers from unfair competition from foreign countries, I am imposing a 25 percent tariff on all heavy trucks manufactured in other parts of the world, effective October 1, 2025. This will protect our major truck manufacturing companies, such as Peterbilt, Kenworth, Freightliner, and others, from foreign interference. We must keep our truck drivers economically strong and empowered."
Inflation Rises in America, Job Losses
Trump has long maintained that tariffs are key to forcing companies to invest more in domestic factories. He has dismissed concerns that importers will pass a significant portion of the cost of the taxes on to consumers and businesses in the form of higher prices. Despite evidence to the contrary, the president continues to claim that inflation is no longer a challenge to the American economy. The Consumer Price Index has risen 2.9 percent over the past 12 months, up from an annual rate of 2.3 percent in April. When Trump first imposed a sweeping set of import taxes, there's no evidence that the tariffs are creating factory jobs or increasing manufacturing. The Bureau of Labor Statistics reported that manufacturers have shed 42,000 jobs and builders have shed 8,000 since April.
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