Washington, 26 September 2025 (dpa/MIA) - US President Donald Trump on Thursday announced a 100% tariff on pharmaceutical products starting Oct. 1, which manufacturers can avoid if they are building production facilities in the United States.

On his Truth Social platform, Trump defined the construction of a pharmaceutical plant as either "breaking ground" or being "under construction."

"There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started," he added.

The tariffs are expected to hit countries such as India, a major supplier of pharmaceuticals to the US. German pharmaceutical firms are also concerned, as the US is their most important export market, accounting for nearly a quarter of German pharma exports.

In 2024, German pharmaceutical exports to the US were valued at around €27 billion ($31.5 billion), according to the Federal Statistical Office. This makes the US market far more critical for the German pharma industry, which employs roughly 130,000 people, than it is for other sectors such as machinery or chemicals.

Unlike in Germany, where lawmakers regulate the prices of prescription drugs, US drug prices are generally much higher than in other industrialized countries. Trump has criticized the disparity, arguing that US citizens effectively help fund research through higher prices, from which other countries benefit.

Uncertainty amongst European manufacturers

While a deal between the US and the European Union set a base tariff rate of 15% for EU exports earlier this year, it remained unclear whether pharmaceutical, semiconductor and lumber producers were covered under the cap.

The uncertainty for European manufacturers follows similar confusion in the automotive sector, where US tariffs on EU cars were only clarified on Thursday, retroactively reducing the rate from 27.5% to 15% as of Aug. 1.

Just minutes before Trump's announcement, he said that a 50% tariff would be imposed on kitchen cabinets, bathroom vanities and related products, also starting Oct. 1.

A 30% tariff would apply to upholstered furniture, with the measures justified by what he described as a "flooding" of these goods into the US.

He also announced that he will impose a 25% tariff on all "Heavy (Big!) Trucks" imported from abroad to protect US manufacturers from "unfair" foreign competition, citing national security.

It was initially unclear whether the new rules would be applied on top of existing duties, such as country-specific rates.