Trump Announces 100% Tariffs on Branded Drugs, Raising Alarm for Indian Pharma

Washington: US President Donald Trump on Thursday unveiled sweeping tariff measures, including a 100 per cent duty on branded and patented pharmaceutical imports from October 1, 2025. The decision is expected to have significant repercussions for India, which counts the United States as its largest market for pharmaceutical exports.

Announcing the move on his social media platform Truth Social, Trump said companies would only be exempt if they were “building” manufacturing facilities in America—defined as either breaking ground or already under construction. “There will, therefore, be no tariff on these pharmaceutical products if construction has started,” he added.

The announcement was part of a broader tariff package that also introduced 50 per cent duties on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks. Trump argued that cheap imports were hurting US manufacturers, saying tariffs were required “for national security and other reasons.”

The new duties come as a potential blow to Indian drugmakers. In FY24, India exported $27.9 billion worth of pharmaceutical products, of which $8.7 billion (₹77,231 crore)—nearly a third—went to the US, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil). In the first half of 2025 alone, exports stood at $3.7 billion (₹32,505 crore).

Indian firms supply over 45 per cent of generics and 15 per cent of biosimilars consumed in the US. Major companies including Sun Pharma, Dr Reddy’s, Zydus Lifesciences, Aurobindo Pharma, and Gland Pharma generate between 30 and 50 per cent of their revenue from the American market.

While the tariffs target branded and patented drugs—a segment dominated by multinational corporations—industry experts warn that the ambiguity around complex generics and specialty medicines leaves Indian exporters uncertain about the future scope of restrictions.

The move adds to a series of recent tariff hikes. Earlier this year, Trump slapped 50 per cent duties on Indian imports, including a 25 per cent penalty over New Delhi’s continued purchase of Russian oil. The latest measures underline Washington’s escalating protectionist stance, which could strain trade ties further.

For India’s pharmaceutical industry—central to global supply chains and known for affordable generics—the US tariffs pose the risk of higher costs, reduced market access, and shrinking margins in its most critical overseas market.