New Delhi: US President Donald Trump has announced a fresh round of tariffs, declaring a 100 per cent duty on imports of branded and patented pharmaceutical products starting October 1. The move could have far-reaching implications for India’s pharmaceutical sector, which counts the United States as its largest export market.
In a statement, Trump said that only companies building manufacturing plants in the United States would be exempt from the tariffs. “Starting October 1st, 2025, we will be imposing a 100 per cent tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America,” he declared, stressing that “breaking ground” or “under construction” would qualify as compliance.
The tariff escalation comes alongside new duties on a range of goods: 50 per cent on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks. Trump framed the measures as essential to national security and to boost domestic manufacturing, while also aiming to reduce the budget deficit.
The United States is India’s largest buyer of pharmaceutical products. In FY24, India exported nearly $28 billion worth of pharma goods, with over $8.7 billion headed to America. In the first half of 2025 alone, exports to the US reached $3.7 billion. India supplies nearly half of all generic drugs and around 15 per cent of biosimilars consumed in the American market.
Major Indian firms such as Sun Pharma, Dr Reddy’s, Zydus Lifesciences, Aurobindo Pharma, and Gland Pharma derive between 30 and 50 per cent of their revenues from the US. While Trump’s tariffs are aimed at branded and patented drugs a category dominated by multinational corporations the lack of clarity around complex generics and specialty medicines has created uncertainty for Indian exporters.
Indian manufacturers operate on thin margins in the US generics space. If tariffs extend beyond branded drugs, they may be unable to absorb the costs and could be forced to raise prices, a burden ultimately felt by American consumers and healthcare providers.
