President Donald Trump announced a 100% import tariff on branded pharmaceutical drugs starting October 1, with carve-outs for companies actively constructing manufacturing plants in the U.S. and exemptions on generics. This aggressive policy threatens to disrupt global drug supply chains, especially impacting small and midsize biotechs dependent on imports. While recent domestic manufacturing investments may shield some companies, the timing and definitions of 'building' pose significant hurdles. The sector faces heightened uncertainty amid stalled trade agreements and complex regulatory environments.