Trump Slaps 100 Per Cent Tariffs On 'Branded Or Patented' Drugs, Uncertainty Grows For Indian Pharma

US President Donald Trump has declared tariffs of up to 100 per cent on branded and patented pharmaceutical imports effective from 1 October, NDTV reported.

The decision is expected to affect India’s pharma sector, a key exporter to the US.

"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," the US President said on Truth Social.

The announcement builds on tariff measures rolled out in August, reflecting Trump’s belief that import taxes will curb the US budget deficit and spur domestic manufacturing.

Trump clarified that “IS BUILDING” means breaking ground or having construction underway, making such projects exempt from the new duties.

Alongside pharmaceuticals, the new tariffs imposed include 50 per cent duties on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks.

He justified the move on grounds of “national security and other reasons,” though without offering a formal legal basis.

The US is India’s largest market for pharmaceutical exports. In FY24, India shipped $27.9 billion worth of pharma goods, with $8.7 billion—nearly one-third—bound for America, according to the Pharmaceuticals Export Promotion Council.

Exports worth $3.7 billion were already recorded in the first half of 2025.

India accounts for over 45 per cent of US generic drug supplies and 15 per cent of biosimilars.

Leading Indian companies such as Dr Reddy’s, Aurobindo, Zydus, Sun Pharma and Gland Pharma derive 30–50 per cent of their revenues from the American market.

While the measures mainly cover branded and patented drugs, questions remain on whether complex generics and specialty medicines from India could also face scrutiny.

US consumers rely heavily on affordable Indian generics.

Industry experts warn that higher tariffs may fuel drug price inflation and shortages.

Indian companies, already operating on tight margins, may have to pass added costs to consumers and insurers.

The move follows earlier tariffs, including a 50 per cent duty on Indian imports and a 25 per cent penalty linked to India’s continued purchase of Russian oil.

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