Trump Declares 100% Tariffs on Pharma Firms Not Building U.S. Plants

Summary

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WSJ What’s News – AM Edition

Episode: Trump Declares 100% Tariffs on Pharma Firms Not Building U.S. Plants

Date: September 26, 2025
Host: Caitlin McCabe (Wall Street Journal)

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Episode Overview

This episode explores the Trump administration's sweeping new tariffs targeting foreign pharmaceutical, trucking, and home goods firms in a bid to drive domestic manufacturing, as well as the unprecedented indictment of former FBI Director James Comey. The show also covers NATO’s escalating struggle to counter drone incursions from Russia in European airspace, highlighting the evolving nature of hybrid warfare on the continent.

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Key Discussion Points and Insights

1. Trump’s New Tariffs on Foreign Goods

[00:46 - 04:13]

• Announcement Details

  • President Trump will impose a 100% tariff on branded/patented drugs from companies not building manufacturing plants in the U.S.
  • Additional tariffs: 25% duty on imported heavy trucks, 50% on kitchen cabinets, bathroom vanities, and 30% on upholstered furniture.
  • All tariffs take effect Thursday, October 1st.

• Impact on Pharmaceutical Industry

  • The pharma sector is hardest hit; U.S.-targeted firms must manufacture in the U.S. or face steep import costs.
  • “The pharmaceutical industry stands to bear the biggest brunt of the new levies...” (Caitlin McCabe, [00:47])
  • Over a dozen pharma companies have promised more than $350 billion in new U.S. projects through the decade.

• Market Response

  • European companies (e.g., Roche, Novo Nordisk) largely shielded due to prior U.S. investments.
  • “So far, the response in Europe has been kind of muted...the sell off has been more pronounced [in Asia].” (Ben Dummett, [02:08])
  • U.S. imports of drugs from Asia make up a small fraction (4% in 2024) of total imports.

• Broader Trade Policy Shift

  • White House considering mandating chipmakers to match U.S.-made and imported semiconductor volumes, or pay tariffs—a move affecting major players like Apple and Dell.
  • “We are exclusively reporting that the Trump administration is planning to ask chip makers to manufacture the same number of semiconductors at home as their customers import from overseas producers...” (Caitlin McCabe, [03:21])

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2. Indictment of Former FBI Director James Comey

[04:13 – 06:35]

• Indictment Summary

  • James Comey, former FBI Director, indicted by a federal grand jury in Virginia on charges of making false statements and obstruction.
  • Seen widely as President Trump seeking retribution for the Russia investigation during his first term.
  • “President Trump pursued this indictment against Comey because he's long had Comey in his crosshairs.” (Annie Linsky, [04:13])

• Political and Legal Implications

  • Replacing the U.S. Attorney to get an indictment, after the prior attorney declined, signals Trump’s exertion of power over the Justice Department.
  • “This is an instance where Trump was very clear that he wanted an indictment against a person who he perceives as a political enemy.” (Annie Linsky, [05:11])
  • The Justice Department’s independence—from the White House—is described as fundamentally altered under Trump.

• Response and Next Steps

  • Comey’s arraignment set for October 9, with both sides expected to fight vigorously.
  • “Comey...has the best legal team available to him, but he is also facing the full force of the federal government...” (Annie Linsky, [05:53])
  • Democrats denounce the case as an abuse of power.

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3. NATO’s Growing Threat From Russian Drone Incursions

[07:28 – 12:10]

• Recent Incidents

  • Denmark experienced two significant drone-related airspace closures in a week, including one at Copenhagen Airport and another near major airbases.
  • Russian drones shot down in Poland; Russian jets breached Estonian airspace—largest such incidents since the Ukraine war began.

• Strategic Dilemmas

  • “If you shoot down a drone, it will come down. And these are pretty big unmanned vehicles. So it could hit houses, it could hit people on the ground.” (Suna Rasmussen, [09:01])
  • Shooting drones risks collateral damage and rapidly depleting missile arsenals.

• Counter-Drone Challenges

  • Drones are cheap and rapidly produced; counter-drone tech lags behind.
  • “Drone technology is developing much faster than counter-drone technology.” (Suna Rasmussen, [10:05])
  • ‘Drone wall’ proposals encounter detection and interception limitations, especially for drones launched internally.

• Evolving Defense Priorities

  • These incursions may force NATO states, especially Denmark, to reconsider balancing aid to Ukraine with domestic defense needs.
  • “This new pattern...could possibly push Europe to reconsider its priorities in Ukraine and whether supporting Ukraine to the extent it has done so far is the right approach.” (Suna Rasmussen, [11:27])

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Notable Quotes & Memorable Moments

• On Pharma Tariffs:
  “The pharmaceutical industry stands to bear the biggest brunt of the new levies, with Trump posting on social media that the U.S. will impose a 100% tariff on branded or patented drugs unless the company is building a manufacturing plant in the U.S.”
  — Caitlin McCabe ([00:47])

• On Market Impact:
  “For Asia, the sell off has been more pronounced, but there’s a question mark as to how lasting the impact will be...”
  — Ben Dummett ([02:20])

• On Trump’s Political Retaliation:
  “This is an instance where Trump was very clear that he wanted an indictment against a person who he perceives as a political enemy.”
  — Annie Linsky ([05:11])

• On Hybrid Warfare:
  “Drone technology is developing much faster than counter-drone technology...they can basically overwhelm almost counter-drone defense systems.”
  — Suna Rasmussen ([10:05])

• On Domestic Security vs. Support for Ukraine:
  “If all of a sudden Denmark is in a situation where it has to use its own aerial defenses and missiles to defend its own territory... that could possibly push Europe to reconsider its priorities in Ukraine.”
  — Suna Rasmussen ([11:27])

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Important Segment Timestamps

• Trump's New Tariff Announcements: 00:46 – 04:13
• Markets and Pharma Industry Response: 02:08 – 02:36
• Semiconductor Policy Changes: 03:20 – 04:13
• Indictment of James Comey: 04:13 – 06:35
• NATO & Drone Incursions Overview: 07:28 – 12:10
• Foreign Correspondent Interview (Suna Rasmussen): 08:10 – 12:10

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Conclusion

This episode paints a vivid, timely picture of rapid policy changes with global business and security implications—from trade wars remaking the pharmaceutical and tech industries, to legal actions reflecting deepening U.S. political divides, and the evolution of warfare challenging NATO’s defenses. Each segment underscores both the volatility and interconnectedness of current events shaping global markets and geopolitics.

Transcript

[A]

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[B]

President Trump says he's slapping 100% tariffs on pharmaceutical products from companies that aren't building plants in the U.S. plus, James Comey is indicted as Trump seeks payback against the former FBI director.

[C]

Comey is somebody that Trump has had in his crosshairs really for years, and this development is part of an effort by Trump to exact the sort of vengeance that he talked about on the campaign trail.

[B]

And we look at the difficulty in defending against drones that are buzzing into NATO airspace. It's Friday, September 26th. I'm Caitlin McCabe for the Wall Street Journal, and here is the AM edition of what' News, the top headlines and business stories moving your world today. The White House's trade war is front and center once again today after President Trump announced new tariffs on pharmaceuticals, large trucks and furniture and home goods. The pharmaceutical industry stands to bear the biggest brunt of the new levies, with Trump posting on social Media that the U.S. will impose a 100% tariff on branded or patented drugs unless the company is building a manufacturing plant in the U.S. the announcement marks the latest move by Trump to reshape the pharmaceutical industry. Last month, he sent letters to 17 drug makers asking them to lower drug costs for Americans to match the lowest price offered in other developed nations in recent months to get ahead of potential tariffs. More than a dozen pharma companies have announced new US Construction projects, with a Wall Street Journal analysis showing they've pledged to spend more than $350 billion by the end of this decade on manufacturing and R and D. Finance reporter Ben Dummett says Trump's announcement has rattled some markets this morning, with shares of drugmakers falling in Asia.

[D]

So far, the response in Europe has been kind of muted. That's partly because the big European pharma companies like Roush, for example Novo Nordisk, have already announced big investments in the US So that should appease Trump. As for Asia, the sell off has been more pronounced, but there's a question mark as to how lasting the impact will be, because at least Last year only 4% of US drug imports were from Asia.

[B]

In addition to the pharma tariffs, Trump also announced a 25% duty on imported heavy trucks, a 50% levy on kitchen cabinets, bathroom vanities and similar products, and a 30% tariff on upholstered furniture. The president says the levies will begin on Thursday, October 1st. The tariff announcements come as the White House is weighing a plan to dramatically reduce America's reliance on semiconductors made overseas as it looks to spur domestic manufacturing and reshape global supply chains. We are exclusively reporting that the Trump administration is planning to ask chip makers to manufacture the same number of semiconductors at home as their customers import from overseas producers, people familiar with the concept said. Companies that don't maintain a one to one ratio over time would have to pay a tariff. The plan stems from President Trump's comments last month that tech firms that invest more domestically would avoid roughly 100% tariffs on semiconductors. The plan could challenge the biggest tech companies like Apple and Dell Technologies, which import products containing a host of different chips from all around the world. A federal grand jury in Virginia has indicted former FBI Director James Comey on charges of making false statements and obstruction in one of the most glaring examples of President Trump's efforts to seek retribution against his political enemies. The charges come after Trump publicly questioned why the Justice Department hadn't brought cases against several of his key adversaries and called on Attorney General Pam Bondi to act quickly.

[C]

President Trump pursued this indictment against Comey because he's long had Comey in his crosshairs.

[B]

That's Journal White House reporter Annie Linsky.

[C]

He believes that James Comey broke the law when Comey was investigating Trump for ties, alleged ties between Trump's first campaign and the Russian government. And this investigation that Comey led in Trump's first term was crippling. It dominated news stories. It was a constant narrative that Trump feels undercut his work in his first term.

[B]

Last week, the president replaced the US Attorney he appointed in the Eastern District of Virginia, who had told colleagues he did not see a case to bring against Comey. Prosecutors then raced to obtain the indictment as the statute of limitations on such a case was due to run out next week. Annie says the success of that indictment shows Trump has a firm grip on government.

[C]

This is always a political office. In post Watergate years, the Department of Justice has always tried to at least appear independent from the White House. This is a complete change from that. This is an instance where Trump was very clear that he wanted an indictment against a person who he perceives as a political enemy. Trump made it very clear he was disappointed and instead through the Justice Department, replaced a prosecutor with somebody who was willing to take this case to a grand jury and bringing it before the grand jury. They were successful.

[B]

But Annie says the indictment is just the start of a lengthy legal process.

[C]

The arraignment on this case is set for October 9, but Comey's lawyers are going to have the opportunity to mount the most robust possible defense. Comey is a very sophisticated Washington player. He has the best legal team available to him, but he is also facing the full force of the federal government, which also is going to have every resource available to them. So we are looking, staring at the beginning of a legal clash that is going to be occurring over the next months and quite frankly, probably years. Comey also responded out of social media posts online saying that he is innocent and that he plans to vigorously defend this case.

[B]

Democrats have criticized the case as an abuse of power. Coming up, we unpack the challenge for NATO countries in responding to drones entering their airspace in what's being called a new age of hybrid warfare. That story after the break.

[E]

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[B]

NATO defense ministers are meeting today to address a growing issue how to stop drone incursions. Just yesterday, Denmark said a hybrid attack had shut its airspace for the second time in a week, while NATO fighter jets shot down several Russian drones that flew into Poland earlier this month. Meanwhile, Russian jets flew into Estonian airspace just last week. They're the biggest breaches of NATO airspace since the Ukrainian war began, with member states saying the bloc urgently needs to come up with better defenses. Foreign correspondent Suna Rasmussen has been covering the drone incursions for the journal suna. These seem to be an increasingly regular occurrence. Let's start with what we do know about these attacks.

[F]

So over the past week, Danish authorities have spotted drones first in Copenhagen around Copenhagen Airport, which is the busiest airport in Scandinavia. They had to close down for air traffic for several hours on Monday evening. And then later in the week, drones were spotted at four different sites in the western part of the country, including around an air base that's home to most of Denmark's F16 and F35 fighter jets. So those two in particular, the Copenhagen airport and the air base are quite serious incursions.

[B]

I want to dig in A little bit more to the issue of shooting down drones. Earlier this week we had President Trump saying that NATO allies should shoot down Russian aircraft in their airspace. But is that a feasible way to handle these incursions? I mean, Danish authorities said it was too dangerous because the airports are near heavily populated areas.

[F]

I mean, it's feasible in the sense that Denmark could certainly do it. Denmark has adequate defenses against drones. What Denmark doesn't have is an adequate system to detect drones and also to neutralize drones if they come in too large a number. And that speaks to another dilemma in this. One thing that's holding Danish authorities back, as you say, is security on the ground. If you shoot down a drone, it will come down. And these are pretty big unmanned vehicles. So it could hit houses, it could hit people on the ground. But I think a bigger issue is also so whether it is strategically prudent for a country like Denmark to do so. You could quickly waste quite a large part of your missile arsenal if you shot down drones every time they were sent over Europe, if it continues to be a regular occurrence. Denmark and other European countries have called for a so called drone wall to defend Europe against these types of incursions. But that comes with a whole host of other challenges as well.

[B]

Suna, you mentioned a drone wall. If detection is so difficult, what would that look like?

[F]

One issue that's important to understand is that drone technology is developing much faster than counter drone technology. So at this point, Russia, or Ukraine for that matter, can send swarms of relatively cheap, affordable, quickly mass produced drones over an enemy country and basically overwhelm almost counter drone defense systems or the aerial defense systems of a particular country. And what many Western security officials are now calling for is investment into counter drone technology. Basically technology that can be produced at a faster clip and much cheaper than they're able to produce them. Now, that's one issue sort of hampering this idea of a drone wall. Another issue is that not all drones can be intercepted. I mean, some drones can't be jammed. Some drones are also launched from within the country that they're targeting. That seems to maybe have been the case in Denmark. For example, here, late on Wednesday night were launched in the vicinity of Denmark. They were not launched from far away, meaning they're not launched from Russia. So that also poses a problem with a drone wall. A drone wall would not necessarily be able to detect or neutralize drones from within the boundaries of the wall.

[B]

So if this is just sort of the new frontier of modern warfare, how does this change the military apparatus of countries like Denmark in terms of how they think of defense.

[F]

Yeah. This is interesting because Denmark, in particular, the way that Denmark has approached the war in Ukraine, has been to basically donate all its artillery to Ukraine and really focus on bolstering Ukraine's defenses. But if all of a sudden Denmark is in a situation where it has to use its own aerial defenses and missiles to defend its own territory. And even though Danish authorities haven't blamed anyone for these recent drone incursions, regardless, I think this new pattern that we're seeing in Europe, from a Russian perspective, that could possibly push Europe to reconsider its priorities in Ukraine and whether supporting Ukraine to the extent it has done so far is the right approach.

[B]

That's foreign correspondent Suna Rasmussen. Thanks for joining us.

[F]

You're welcome.

[B]

And that's it for what's news for this Friday morning. Today's show is produced by Hattie Moyer. Our supervising producer was Daniel Bach. And I'm Caitlin McCabe for the Wall Street Journal. We'll be back tonight with a new show. Until then, have a nice weekend. And thanks for listening.

[A]

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