US President Donald Trump on Thursday announced sweeping tariffs of up to 100 per cent on imports of branded and patented pharmaceutical drugs, effective October 1, 2025. The move could have significant implications for India’s pharmaceutical sector, which is heavily reliant on the American market.
“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,” Trump wrote on his social media platform Truth Social.
He clarified that “is building” would be defined as projects where construction had already begun or was under way. “There will, therefore, be no tariff on these pharmaceutical products if construction has started,” Trump added.
Wider Tariff Blitz
The announcement is part of Trump’s latest tariff escalation. Alongside the pharma duties, he imposed:
- 50% duty on imports of kitchen cabinets and bathroom vanities
- 30% duty on upholstered furniture
- 25% duty on heavy trucks
While no specific legal justification was provided, Trump claimed the measures were required “for national security and other reasons,” further underlining his administration’s reliance on tariffs to curb deficits and push for domestic manufacturing.
India Among The Most Exposed
The United States is India’s single largest export market for pharmaceutical goods. According to the Pharmaceuticals Export Promotion Council of India (Pharmexcil), out of India’s $27.9 billion pharma exports in FY24, around $8.7 billion (31%) went to the US. In just the first half of 2025, another $3.7 billion worth of medicines were exported.
India supplies over 45% of generic drugs and 15% of biosimilars consumed in America. Companies such as Dr Reddy’s Laboratories, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma, and Gland Pharma reportedly derive 30–50% of their revenues from the US market.
Although Trump’s tariffs appear to target multinational giants selling branded and patented drugs, uncertainty remains over whether complex generics and speciality medicines from India could also face scrutiny. Many leading Indian players already operate manufacturing plants in the US, potentially shielding part of their business.
Impact On US Consumers
Experts warn that tariffs on Indian pharma imports could backfire on American consumers. The US healthcare system depends heavily on low-cost Indian generics. Any disruption could trigger price hikes, shortages, and higher insurance costs.
For Indian firms, which already operate on thin margins in the US generics segment, absorbing additional costs would be difficult. Companies may be forced to pass on expenses to US consumers, worsening inflationary pressures.
Previous Tariffs On India
Trump’s announcement comes after his earlier move to impose 50% tariffs on Indian imports, including a 25% “penalty” linked to New Delhi’s continued purchase of Russian oil.
The latest measures are expected to intensify trade friction between Washington and New Delhi, even as both sides attempt to strengthen strategic ties.