Trump’s New Tariff Threat: US Considers 100% Tax on Medicines Amid Iran Conflict

NEW DELHI: President Donald Trump continues to send shockwaves through the global economy with a series of aggressive trade maneuvers. Following his disruptions in the oil market—affecting nations from Venezuela to Iran—global supply chains for oil and gas are already under severe strain.

The ongoing conflict with Iran and the potential closure of the Strait of Hormuz have sent crude oil prices soaring, leaving many nations grappling with energy shortages. Just as the world attempts to stabilize, a new report from The Wall Street Journal suggests that the Trump administration is preparing a fresh wave of tariffs that could redefine international trade yet again.

According to the reports, the U.S. is gearing up to impose a 25% tariff on steel and aluminum products, but the most significant blow comes in the form of a potential 100% tariff on certain pharmaceutical products. This move follows a recent U.S. court ruling that invalidated Trump’s previous “reciprocal tariffs,” effectively canceling existing duties on various countries.

In response, the administration is pivoting toward these new, targeted levies, which could be officially announced as early as next week.The implications for the Indian pharmaceutical sector are significant, though perhaps not entirely dire. India is a major exporter of medicines to the U.S. market, and a 100% duty would typically create a massive barrier for entry.

However, the bulk of Indian exports consists of generic drugs, which have historically benefited from certain tariff exemptions due to their role in keeping healthcare costs low.

If the new policy maintains these exemptions and focuses primarily on branded or specialized pharma, Indian manufacturers might not only dodge the bullet but could actually find a competitive advantage in a reshuffled American market.