#Trump tariffs# India pharma exports# branded drugs# US Imports# generic medicines# pharmaceutical industry
Washington, DC/IBNS-CMEDIA: US President Donald Trump on Thursday unveiled fresh tariffs of up to 100 percent on imports of branded and patented pharmaceutical products, effective October 1, 2025 — a move that could deal a heavy blow to India’s pharma industry, one of the country’s most trade-reliant sectors with America.
“Starting October 1st, 2025, we will be imposing a 100 percent Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” the Republican leader said on Truth Social.
The announcement underlined Trump’s continued push for tariffs beyond the sweeping duties introduced in August, signalling his confidence that import taxes can shrink the US fiscal deficit while bolstering domestic production.
“‘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,” he added.
As part of his latest tariff drive, Trump also imposed duties of 50 percent on kitchen cabinets and bathroom vanities, 30 percent on upholstered furniture, and 25 percent on heavy trucks.
While offering no legal explanation, he claimed the measures were necessary “for National Security and other reasons.”
India’s exposure
The United States is India’s single largest destination for pharmaceutical exports.
In FY24, shipments to the US were valued at $8.7 billion (Rs 77,138 crore), making up 31 percent of India’s total pharma exports worth $27.9 billion.
In just the first half of 2025, India exported a further $3.7 billion (Rs 32,505 crore) worth of drugs to America, according to the Pharmaceuticals Export Promotion Council of India.
India accounts for over 45 percent of generic medicines and 15 percent of biosimilars consumed in the US.
Companies such as Dr Reddy’s, Sun Pharma, Zydus Lifesciences, Aurobindo Pharma and Gland Pharma reportedly generate between 30 and 50 percent of their revenue from the American market.
Although the newly announced tariffs appear to primarily target patented and branded medicines, a domain dominated by multinational players, the possibility of complex generics and speciality products coming under scrutiny has created uncertainty.
Some Indian majors already operate manufacturing plants in the US, which could provide a cushion.
However, higher tariffs on affordable Indian generics could mean costlier medicines, potential shortages, and higher insurance payouts in the US.
For Indian firms, margins in the American generics segment are already thin, raising concerns they may be forced to pass additional costs on to consumers.
Trump has already hit Indian imports with a 50 percent tariff, which includes a 25 percent levy linked to New Delhi’s continued purchase of Russian oil.
