Key Indian pharmaceutical companies may suffer greatly as a result of Donald Trump’s announcement on Thursday that he would impose a 100% tax on imports of branded or copyrighted prescription products starting on October 1.
Trump Imposes 100% Tariff on Drugs: Major Blow to Indian Pharma Exports
“Unless a company is constructing its pharmaceutical manufacturing plant in America, we will be charging a 100% tariff on every branded or copyrighted pharmaceutical product starting October 1st, 2025. In a post on Truth Social, the US President stated that “IS BUILDING” would be interpreted as “breaking ground” and/or “under construction.”
The announcement isn’t just about drugs. According to Donald Trump, import tariffs would be imposed at a rate of 25% on heavy vehicles, 30% on upholstered furniture, and 50% on kitchen cabinets.
He mentioned a 25% tax on “all ‘Heavy (Big) Trucks’ made in other parts of the world” in a another article in order to help American producers like “Peterbilt, Kenworth, Freightliner, Mack Trucks and others.” “For many reasons, but above all else, for National Security purposes!” he said the truck tariffs were imposed.
The Trump administration opened an investigation into truck imports earlier this year in an effort to “determine the effects of national security.”
Why this is important for India
For Indian pharmaceutical companies, the US is the biggest market, particularly when it comes to reasonably priced generic medications.
Pharmaceutical items worth $3.6 billion (₹31,626 crore) and $3.7 billion (₹32,505 crore) were exported by India to the United States in 2024 and 2025, respectively.
The US market’s dependence on less expensive Indian generics has long benefitted companies like Dr. Reddy’s, Sun Pharma, Lupin, and Aurobindo.
Trump’s tariff decision seems to target branded and patented medications, which are controlled by multinational corporations. However, it is unclear if complicated generics and specialized medications from India would also be subject to inspection.
The United States has already imposed 50% tariffs on Indian exports, which Trump claims also constitute a 25% “penalty” for continuing to buy Russian oil.
Read Also: Rubio Wants to Fix 25% Tariffs on India – ‘We’ve Already Started,’ He Says
FAQ:
Q1. What did Donald Trump announce regarding pharmaceutical imports?
Donald Trump announced that starting October 1, 2025, the US will impose a 100% tariff on all branded or copyrighted prescription drugs unless the manufacturing facility is being built in the US.
Q2. Will the tariff apply to Indian pharmaceutical companies?
Yes, Indian pharmaceutical companies could be affected, especially if they export branded or patented medicines to the US. However, the exact impact on generics and complex formulations is still unclear.
Q3. Why is this decision important for India?
The US is the largest market for Indian pharma, particularly for affordable generics. In 2024 and 2025, India exported drugs worth $3.6–3.7 billion to the US. Any tariff hike could significantly disrupt revenues for Indian drugmakers.
Q4. Which Indian pharma companies are likely to be impacted?
Major exporters like Sun Pharma, Dr. Reddy’s, Lupin, and Aurobindo Pharma may face risks if their specialized or branded products fall under the tariff rules.
Q5. Does this tariff affect only medicines?
No. Trump also announced tariffs on other imports, including:
25% on heavy vehicles (trucks)
30% on upholstered furniture
50% on kitchen cabinets
Q6. Why is Trump imposing these tariffs?
Trump stated that the move is to:
Encourage domestic manufacturing in the US
Reduce dependency on imports
Protect national security interests, particularly in the heavy vehicles sector
Q7. How might this impact US consumers?
If tariffs extend beyond branded drugs to generics or complex medicines, US consumers could face higher prices for essential medicines, since Indian drugs are a primary source of affordable treatment.
Q8. How does this link to India’s oil trade with Russia?
The US has already imposed 50% tariffs on some Indian exports, which Trump framed as a 25% penalty for continuing oil imports from Russia. This new move may worsen trade tensions between India and the US.
Q9. Could Indian companies avoid the tariff?
Yes, if Indian pharma companies set up manufacturing plants in the US (or are already building them), they could be exempted from the 100% tariff.
Q10. What’s next for Indian pharma exporters?
Much will depend on clarifications from the Trump administration about whether generics and specialty medicines are included. Indian companies may need to explore:
US-based manufacturing
Diversification of export markets
Lobbying through trade negotiations
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