Topline
President Donald Trump announced a new set of tariffs on Thursday evening, including a 100% levy on patented drugs unless a company is building a plant to manufacture in the U.S., triggering a steep decline in Asian pharmaceutical stocks on Friday.
President Donald Trump announced a new set of tariffs targeting patented and branded drugs.
The Washington Post via Getty Images
Key Facts
In a Truth Social post on Thursday evening, Trump wrote: “Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America.”
The president’s post added that no levy will be charged if “construction has started” for such manufacturing plants.
Major Asian stock indices fell on Friday morning, following Trump’s announcement, with Japan’s Nikkei 225 Index, Hong Kong’s Hang Seng Index, South Korea’s KOSPI and India’s Sensex dropping 0.5%, 0.36%, 2.47% and 0.48% respectively.
Pharma stocks were hit harder as the shares of China’s CSPC Pharmaceutical and Sinopharm fell 1.29% and 0.49% respectively, while Fosun Pharma slumped 3.33%.
Key Indian pharmaceutical stocks also saw steep declines—including Sun Pharma, Biocon, Divi’s Labs, and Lupin, whose stock prices dropped 2.89%, 4.13%, 2.70% and 1.72%, respectively—with the National Stock Exchange’s Nifty Pharma Index falling by more than 2.1%.
Shares of South Korea’s Samsung Biologics and SK Biopharmaceuticals fell 2.15% and 3.52% respectively, while Japan’s Chugai Pharmaceutical and Daiichi Sankyo stock dropped 4.76% and 1.99%.
What Are The Other New Tariffs Trump Announced?
The 100% tariffs on patented drugs were one of several tariff announcements the president made on Thursday night. The president said on Truth Social that his administration will impose a 25% levy on all “Heavy (Big!) Trucks” made in other countries to protect U.S. truck makers like “Peterbilt, Kenworth, Freightliner, Mack Trucks and others,” from the “onslaught of outside interruptions.” In a separate post, Trump announced a new 50% tariff on “Kitchen Cabinets, Bathroom Vanities, and associated products” and a 30% levy on “Upholstered Furniture.” The president’s post claimed there was a “large-scale ‘FLOODING’ of these products into the United States by other outside Countries.” He then added, “We must protect, for National Security and other reasons, our Manufacturing process.”
Source: https://www.forbes.com/sites/siladityaray/2025/09/26/asian-pharmaceutical-stocks-slump-as-trump-announces-100-tariffs-on-patented-drugs/
