From October 1, 2025, US President Donald Trump will enforce a 100% tariff on branded and patented pharmaceutical imports. The policy, he stated, will not apply to companies actively setting up drug manufacturing plants within the US.
India, which exports nearly a third of its $27.9 billion pharma output to America, could feel the brunt of this decision. Indian firms supply around 45% of the generics and 15% of biosimilar medicines consumed in the US. Giants like Sun Pharma, Dr Reddy’s, and Zydus rely heavily on American sales, with revenues ranging from 30–50% coming from that market.
The move is part of a wider tariff package, which also includes steep duties on kitchen cabinets, furniture, and heavy trucks. Trump justified these measures as necessary for “national security” and to strengthen domestic production.
While the tariff is aimed mainly at branded drugs dominated by multinational corporations, there is uncertainty over whether complex generics from India could also be affected. Analysts warn that the new duties might drive up medicine prices in the US, fuel inflation, and even cause shortages, since Indian companies may not be able to absorb the added costs.