US EditionDonald Trump’s Drug Tariff Spares Generics, but India Braces for Fallout
The tariff targets branded drugs to encourage US manufacturing, impacting India’s $30 billion pharma exports, though generics remain exempt, industry groups said.
- On September 26, United States President Donald Trump announced a 100% tariff on branded and patented pharmaceutical products, effective October 1, 2025, except for those with U.S. manufacturing plants breaking ground or under construction.
- The move follows a broader protectionist push that included tariffs on kitchen cabinets, bathroom vanities, and upholstered furniture, with United States President Donald Trump citing large-scale "FLOODING" of imports.
- With FY25 exports reaching USD 30 billion, India shipped $13.1 billion of pharmaceuticals to the U.S. in 2024, highlighting the sector's scale.
- Analysts warn U.S. consumers could face higher prices as new tariffs kick in next week, while Indian pharmaceutical stocks fell 2.6% on Friday after the announcement.
- Despite the shock, India's export mix may shield it as generics dominate and U.S. manufacturing facilities support resilience amid a USD 130 billion projection by 2030.
26 Articles
26 Articles
Trump has imposed a 100% tariff on pharmaceuticals, but industry leaders say this will not have much impact on India. They explain the reasons behind this.
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Trump Declares 100% Tariff On Pharma Imports From October 1, India May Be Hit
US President Donald Trump has 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.
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