Washington: US President Donald Trump on Thursday announced tariffs of up to 100 per cent on imports of branded and patented pharmaceutical drugs, starting October 1, 2025. The move could hit the Indian pharmaceuticals sector hard as it is significantly dependent on trade with foreign countries, particularly the US.
In a post on Truth Social, the US President stated, “Starting October 1, 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 Republican leader added in his post on Truth Social, “'IS BUILDING’ will be defined as, "breaking ground" and/or "under construction."
There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter.” The latest tariff spree also included 50 per cent duty on imports of kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks. Foreign producers, President Trump stated, were undercutting US companies.
“Furniture and cabinetry are flooding the United States. Heavy trucks and parts are hurting our own producers. Tariffs are needed — for National Security and other reasons,” President Trump said. The measures come just weeks after the White House announced earlier trade frameworks and import taxes. President Trump has already slapped 50 per cent tariffs on Indian imports, which also includes a 25 per cent 'penalty' for continued purchase of Russian oil.
The latest move will hurt Indian pharma industry as according to NDTV, America is India’s largest export market for pharmaceutical goods. In FY 24, of India's $27.9 billion worth of pharma exports, 31 per cent or $8.7 billion (Rs 7,72,31 crore) went to the US, according to the Pharmaceuticals Export Promotion Council of India, an industry body. Another $3.7 billion (Rs 32,505 crore) worth of pharma products were exported in just the first half of 2025.
As per reports, India supplies over 45 per cent of generic and 15 per cent of biosimilar drugs used in the US. Firms like Dr Reddy's, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma and Gland Pharma reportedly earn anywhere from 30-50 per cent of their total revenues from the American market. Although the latest American tariffs appear to mainly target branded and patented drugs -- a segment dominated by multinational giants -- uncertainty looms over whether complex generics and speciality medicines from India would also be under the scanner, said the NDTV report.
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