It’s yet to be seen whether Gan Siow Huang, Singapore’s minister of state for both the ministry of trade and industry and the ministry of foreign affairs, provides a new date for when a possible tariff will be enforced, but she did note that that pharma companies based in the country are waiting to hear if plans to construct and grow manufacturing services will be enough to exempt them from facing a levy.
Background on the proposed 100% tariff
The news come during a time in which a 100% tariff on branded and patented drugs was originally expected to take effect Oct. 1, unless pharma companies build domestic production facilities.2
“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 wrote in a Truth Social post at the time of the original annoucement. ‘IS BUILDING’ will be defined as, ‘breaking ground’ and/or ‘under construction.’ There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter!”
It also important to note that branded or patented pharmaceuticals are meds marketed under a trade name and safeguarded by patents or other intellectual property rights, preventing generic competitors from entering the market until those protections expire.
Negotiation strategy or policy pivot?
However, since that announcement, there have also been reports3 saying the US president may not enact the triple-digit pharma tariffs after all. Rather, Trump could be aiming to use the tariffs as a negotiating tactic with pharma companies as they attempt to work out deals with the government to lower drug costs.
Various companies have already been making moves along this front, including Pfizer,4 who reached a deal with the Trump administration to lower drug prices per the president’s most-favored nation executive order (EO).5 The Big Pharma company intends to meet the requirements set forth by the EO, and will take part in TrumpRx, the administration’s direct purchasing platform.
Pfizer will also be receiving a three-year grace period—a time where its products won’t be subject to import taxes—as long as the company holds its end of bargain, which would involve continuing to financially commit to manufacturing in the United States.
“We are proud to join President Trump at the White House to celebrate this landmark agreement that is a win for American patients, a win for American leadership, and a win for Pfizer,” commented Albert Bourla, Pfizer’s chairman and CEO. “By working closely with the administration, we are lowering costs for patients and enabling greater investment in the US biopharmaceutical ecosystem by ending the days when American families alone carried the global burden of paying for innovation. This is about putting all patients first and ensuring America remains the world’s leading engine of medical breakthroughs.”
Trade impact between the US and Singapore
Despite these moving parts and regardless of the results, Singapore's exports to the US are still subject to 10% baseline reciprocal tariff. Singapore reportedly exports approximately $3.1 billion worth of pharma products to the US, with the majority being branded drugs. Trade talks between both the US and Singapore continue to be ongoing.
References
1. Kok X, Stanway D. Implementation Date for US Tariff on Singapore Pharma Exports Postponed, Local Media Reports. Reuters. October 14, 2025. Accessed October 15, 2025. https://www.reuters.com/world/asia-pacific/implementation-date-us-tariff-singapore-pharma-exports-postponed-local-media-2025-10-14/
2. Saraceno N. Trump Announces 100% Tariff on Branded Drugs Unless Pharma Builds US Plants. Pharmaceutical Commerce. September 26, 2025. Accessed October 15, 2025. https://www.pharmaceuticalcommerce.com/view/trump-100-percent-tariff-branded-drugs
3. Hollan M. Trump Pauses Plans to Impose 100% Tariffs on Pharma: Report. Pharmaceutical Executive. October 2, 2025. Accessed October 15, 2025. https://www.pharmexec.com/view/trump-pauses-plans-impose-100-tariffs-report
4. Hollan M. Trump Pauses Plans to Impose 100% Tariffs on Pharma: Report. Pharmaceutical Executive. September 30, 2025. Accessed October 15, 2025. https://www.pharmexec.com/view/trump-announce-government-direct-patient-website-report
5. Hollan M. President Trump Issues Letters to 17 Major Pharma Companies Demanding Action on Most-Favored-Nation Order. Pharmaceutical Executive. July 31, 2025. Accessed October 15, 2025. https://www.pharmexec.com/view/president-trump-letters-17-most-favored-nation-order
