Home > Business > Industry

Korean pharma, biotech companies on alert after Trump vows 100% drug tariffs

Published: 01 Oct. 2025, 19:08 Updated: 01 Oct. 2025, 20:53

A 3D-printed miniature model of U.S. President Donald Trump, the Korean flag and the word ″Tariffs″ are seen in this illustration taken on July 23. [REUTERS/YONHAP]

Korean pharmaceutical and biotech companies are on edge after U.S. President Donald Trump announced that his administration would impose a 100 percent tariff on imported medicines starting Wednesday.

Trump made the pledge in a social media post on Sept. 26, saying, “We will be imposing a 100 percent tariff on any branded or patented Pharmaceutical Product."

The administration has not yet released details on how the policy would be implemented.

This was not Trump’s first warning. Earlier this year, he also flagged the possibility of tariffs on imported drugs. In July, he said his administration would introduce a 200 percent tariff after an 18-month grace period. The new figure of 100 percent is lower than what he announced in July, but industry officials say the policy would still significantly damage Korean exports if enforced.

The United States is Korea’s largest export destination for pharmaceuticals. Korean exports of medicines to the United States last year totaled 2.1 trillion won ($1.5 billion), outpacing the second-largest market, Hungary, by 340 billion won, according to data from the Korea Customs Service.

Director of Medicare and Deputy Administrator of CMS Chris Klomp speaks after U.S. President Donald Trump announced a deal with Pfizer to sell drugs at lower prices, in the Oval office of the White House in Washington on Sept. 30. [REUTERS/YONHAP]

Industry officials say Korean-made medicines would lose competitiveness if the Trump administration imposes tariffs by executive order. Under existing trade agreements, countries such as Japan and members of the European Union are subject to only 15 percent duties under most-favored-nation rules.

“If high tariffs become a reality, exports to the United States will inevitably decline,” a Korea Pharmaceutical and Bio-Pharma Manufacturers Association official said. “Since no detailed schedule has been released, the industry is waiting to see what President Trump decides.”

Biopharmaceutical companies, which account for 63.4 percent of Korea’s U.S.-bound drug exports, have already started stockpiling inventories in the United States.

“We more than doubled shipments to the United States earlier this year because President Trump has repeatedly warned of high tariffs on imported medicines,” an official at a Korean biopharmaceutical firm said.

Some Korean companies are also establishing production bases in the United States, as President Trump pressures foreign companies to invest in the country, warning that Washington would impose tariffs "unless a company is building their pharmaceutical manufacturing plant in America."

Celltrion announced on Sept. 23 that it will acquire a biopharmaceutical plant in Branchburg, New Jersey, in a deal worth $330 million. The company said the decision reflects concerns over escalating tariff barriers.

Lotte Biologics acquired a plant in Syracuse, New York, in 2023. SK Biopharm secured a contract manufacturer in Puerto Rico, while Samsung Biologics is considering acquiring a U.S. plant.

Industry voices argue that negotiations between Seoul and Washington are the only viable solution.

“Korean biosimilars are important in U.S. efforts to lower drug prices and stabilize supply chains, so this could become a bargaining chip in tariff talks,” a pharmaceutical industry source said.

Some analysts warn that the policy could have wider global effects.

Trump has pledged to bring U.S. drug prices down to the lowest in the world and is pressuring multinational drugmakers to comply. Pfizer announced a price cut on Tuesday in response, and other major pharmaceutical companies are expected to follow.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KANG KI-HEON [[email protected]]