Trump announces 100% tariff on pharma imports, India likely to be affected

US President Donald Trump has announced that branded and patented pharmaceutical imports will face tariffs of up to 100% starting October 1, 2025.

The move could significantly impact India, one of the largest suppliers of pharmaceutical products to the American market.

“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump wrote on Truth Social.

The president clarified that “IS BUILDING” means “breaking ground” and/or “under construction.” He added, “There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter.”

The announcement reflects Trump’s continued reliance on tariffs, following earlier frameworks and import duties launched in August. He said the new taxes were needed “for National Security and other reasons,” while also claiming they would reduce the government’s budget deficit and boost domestic manufacturing.

Alongside pharmaceuticals, Trump also imposed fresh tariffs on other imports. Kitchen cabinets and bathroom vanities will face a 50 per cent duty, upholstered furniture 30 per cent, and heavy trucks 25 per cent.

America is India’s largest export destination for pharmaceutical goods. In FY24, India exported $27.9 billion worth of pharma products, of which $8.7 billion (31 per cent) went to the US, according to the Pharmaceuticals Export Promotion Council of India. In just the first half of 2025, another $3.7 billion worth of exports were recorded.

India supplies over 45 per cent of generic and 15 per cent of biosimilar drugs used in the US. Companies like Dr Reddy's, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma, and Gland Pharma reportedly earn between 30-50 per cent of their revenues from the American market.

While the latest tariffs appear aimed at branded and patented drugs, uncertainty remains over whether complex generics and speciality medicines from India could also be affected.

American consumers rely heavily on low-cost generics from India. Higher tariffs could lead to rising drug prices, inflation, and shortages in the US. Indian firms, already operating on thin margins in the American market, may struggle to absorb the additional costs and could be forced to pass them on to insurers or consumers.

Trump has already imposed 50 per cent tariffs on Indian imports, including a 25 per cent penalty for India’s continued purchase of Russian oil.