Trump Imposes 100% Tariff on Branded Pharma Imports, Indian Drugmakers Face Brunt
In a sweeping move that could reshape global pharmaceutical trade, U.S. President Donald Trump has announced a 100 percent tariff on imports of branded and patented pharmaceutical products, set to take effect from October 1, 2025. The announcement is expected to have serious repercussions for Indian drug manufacturers, many of which depend heavily on the U.S. market.
The new levy will target branded and patented medicines — though companies that have already begun building pharmaceutical manufacturing plants in the U.S. will be exempt. Trump clarified that firms whose facilities are “breaking ground” or under construction will not face the tariff.
India is a major supplier to the American pharmaceutical market, especially in generics. In 2024, India’s pharmaceutical exports to the U.S. were valued around USD 3.6 billion, with further shipments of about USD 3.7 billion in the first half of 2025. Leading firms such as Sun Pharma, Dr. Reddy’s Laboratories, Cipla, and Lupin derive a substantial portion of their revenues from U.S. sales.
The tariff announcement has already rattled markets. Indian pharmaceutical stocks fell by over 2 percent in early trading on Friday, reflecting investor anxiety over disrupted access to the U.S. market. The broader sector was especially impacted, with major players seeing swift stock declines.
Analysts suggest the full impact may be muted in the short term because India primarily exports generics (which appear to be excluded from the new tariff regime). However, concerns linger about whether more complex generics and specialty medicines may later be swept in. If that happens, it could inflict deeper damage on key exporters and erode profit margins.
Beyond India, the tariff move is part of a broader shift in U.S. trade policy. Additional import duties are expected on items such as kitchen cabinets, upholstered furniture, and heavy trucks, as the Trump administration seeks to protect American manufacturing interests.
For Indian drugmakers, the path ahead now includes navigating tariff uncertainties, rethinking supply chains, and potentially accelerating investment in U.S. facilities to dodge future import barriers.
The new levy will target branded and patented medicines — though companies that have already begun building pharmaceutical manufacturing plants in the U.S. will be exempt. Trump clarified that firms whose facilities are “breaking ground” or under construction will not face the tariff.
India is a major supplier to the American pharmaceutical market, especially in generics. In 2024, India’s pharmaceutical exports to the U.S. were valued around USD 3.6 billion, with further shipments of about USD 3.7 billion in the first half of 2025. Leading firms such as Sun Pharma, Dr. Reddy’s Laboratories, Cipla, and Lupin derive a substantial portion of their revenues from U.S. sales.
The tariff announcement has already rattled markets. Indian pharmaceutical stocks fell by over 2 percent in early trading on Friday, reflecting investor anxiety over disrupted access to the U.S. market. The broader sector was especially impacted, with major players seeing swift stock declines.
Analysts suggest the full impact may be muted in the short term because India primarily exports generics (which appear to be excluded from the new tariff regime). However, concerns linger about whether more complex generics and specialty medicines may later be swept in. If that happens, it could inflict deeper damage on key exporters and erode profit margins.
Beyond India, the tariff move is part of a broader shift in U.S. trade policy. Additional import duties are expected on items such as kitchen cabinets, upholstered furniture, and heavy trucks, as the Trump administration seeks to protect American manufacturing interests.
For Indian drugmakers, the path ahead now includes navigating tariff uncertainties, rethinking supply chains, and potentially accelerating investment in U.S. facilities to dodge future import barriers.