Highlights:
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Trump announces a 100% tariff on all branded and patented pharmaceutical imports starting October 1, 2025.
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India exported $8.7 billion worth of pharmaceuticals to the US in FY24, making it highly exposed to the new tariff.
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Indian companies supply over 45% of generic medicines and 15% of biosimilars used in the US.
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Higher tariffs could lead to drug price increases, potential shortages, and increased healthcare costs for US consumers.
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Trump also imposes tariffs on kitchen cabinets, furniture, and heavy trucks as part of a broader trade push.
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Major Indian pharma firms, including Dr. Reddy’s, Sun Pharma, and Aurobindo, earn 30–50% of their revenue from the US market.
US President Trump has announced a 100% tariff on all branded and patented pharmaceutical imports effective October 1, 2025. This move targets imported medicines and is part of the administration’s strategy to boost domestic production and encourage pharmaceutical companies to establish manufacturing plants in the United States.
“Starting October 1, 2025, we will be imposing a 100 per cent tariff on any branded or patented pharmaceutical product, unless a company is building its pharmaceutical manufacturing plant in America,” Trump stated in a post on Truth Social. He clarified that “is building” refers to projects that are either under active construction or have already broken ground.
Trump Expands Tariff Measures Across Multiple Sectors
The pharmaceutical tariffs are part of a broader trade policy push by Trump. The president also introduced a 50% tariff on kitchen cabinets and bathroom vanities, a 30% duty on upholstered furniture, and a 25% tariff on heavy trucks. According to Trump, these measures serve national security and economic interests, aiming to reduce the US budget deficit and bring manufacturing back to domestic soil.
Potential Impact on India’s Pharmaceutical Exports
India, the world’s largest supplier of generic medicines, is highly exposed to these new tariffs. The United States is India’s top market for pharmaceutical exports, accounting for 31% of total shipments in FY24. Of India’s $27.9 billion worth of pharmaceutical exports that year, $8.7 billion went to the US, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil). During the first half of 2025 alone, India exported $3.7 billion worth of medicines to the US.
While the tariffs currently target branded and patented drugs—a segment dominated by multinational corporations—there is uncertainty over whether complex generics and specialty drugs might also face scrutiny. Major Indian pharmaceutical companies, including Dr. Reddy’s Laboratories, Aurobindo Pharma, Sun Pharma, Zydus Lifesciences, and Gland Pharma, earn between 30% and 50% of their total revenues from the US market.
Trump’s Tariffs Could Affect US Drug Prices
Indian manufacturers supply over 45% of generic medicines and 15% of biosimilars used in the United States. Industry experts warn that Trump’s tariffs may increase drug costs, create shortages, and raise healthcare expenses for American consumers. Indian firms operating on thin margins in the US generics market may pass the additional costs to buyers and insurers.
The potential ripple effects extend beyond consumers. Hospitals, clinics, and insurance providers could face higher costs, while Indian pharmaceutical companies may be forced to reconsider their US market strategies, including delayed or reduced exports.
Context: Previous Trade Actions by Trump
This tariff announcement follows earlier measures from Trump, including a 50% tariff on select Indian imports imposed in August 2025, and a 25% penalty related to India’s ongoing purchase of Russian oil. Trade tensions between Washington and New Delhi have intensified despite ongoing discussions to finalize a bilateral trade agreement.
Analysts say that Trump’s continued tariff push underscores a broader strategy aimed at reshaping US trade relationships, particularly with major exporters like India. The president has consistently cited national security and economic growth as reasons for imposing tariffs on imported goods.
The 100% tariff on branded pharmaceutical products announced by Trump marks a significant escalation in US trade policy. While the immediate impact falls on Indian pharmaceutical exporters, the broader implications could affect drug prices, supply chains, and healthcare costs in the United States. As October 1 approaches, both Indian companies and US stakeholders are closely monitoring developments and preparing for potential disruptions in the pharmaceutical market.
