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- Trump imposed tariffs of up to 100% on branded pharmaceutical imports starting from 1 October 2025
- No tariff applies if firms begin building manufacturing plants in the US before that date
- India supplies 45% of generic and 15% of biosimilar drugs used in the US market
Did our AI summary help? Let us know. Switch To Beeps Mode Washington: US President Donald Trump on Thursday announced tariffs of up to 100 per cent on imports of branded and patented pharmaceutical products from October 1. India's pharmaceuticals sector, one of the most dependent domestic industries on trade with America, could be significantly impacted by the move.
"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," Trump said on Truth Social.
"“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!"
Trump's latest tariff blitz also includes a 50 per cent duty on the imports of kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks.
How Could India Be Impacted?
America is India's largest export market for pharmaceutical goods. In FY 24, of India's $27.9 billion worth of pharma exports, 31 per cent or $8.7 billion went to the US, according to the Pharmaceuticals Export Promotion Council of India, an industry body.
Per reports, India supplies over 45 per cent of generic and 15 per cent of biosimilar drugs used in the US. Firms like Dr Reddy's, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma and Gland Pharma reportedly earn anywhere from 30-50 per cent of their total revenues from the American market.
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