Trump Slaps 100% Tariffs on Drugs, Pushes 1:1 Chip Rule

​Pharma in the Crosshairs
President Trump unveiled another wave of tariffs, including a 100% duty on patented drugs unless companies are actively building U.S. plants. The crackdown, effective October 1, also targets heavy trucks (25%), kitchen cabinets and vanities (50%), and upholstered furniture (30%).

The 1:1 Chip Rule
In a bid to cut foreign dependence, the administration is rolling out a 1:1 production rule for semiconductors. Chipmakers will need to manufacture in the U.S. at least as many chips as they import, or face steep tariffs. Officials frame the plan as a matter of economic and national security.

Fallout for Farmers
Trump acknowledged tariffs may sting farmers “for a little while” but pledged bailout funds from tariff revenue. Critics warn the plan could hit legal roadblocks, with the Supreme Court set to fast-track review of Trump’s broader tariff regime.

Pharma Giants React
European drugmakers like Novo Nordisk, GSK, and AstraZeneca slumped on the news, even as many have already pledged billions for U.S. facilities. Analysts noted most big players have some U.S. footprint, which may soften the blow. Still, countries like Singapore and Switzerland are seen as especially vulnerable.

Asia Pushback
The tariff storm isn’t limited to pharma and chips. Trump demanded South Korea and Japan provide billions “upfront” in investment, a claim that Seoul quickly disputed, saying payments would only follow official project calls.

Trade Talks With China
At the same time, Washington is negotiating with Beijing on a potential blockbuster Boeing aircraft deal that could anchor a broader trade agreement. Trump also confirmed progress on spinning off TikTok’s U.S. arm, with Oracle among the investors.

The Bottom Line
​Trump’s tariff machine is still running full throttle, now reaching into medicine and microchips. With global markets rattled, allies frustrated, and a Supreme Court ruling looming, the fight over trade is set to get even more heated.