Trump100% Tariff on Pharma: What This Means for India’s Drug Manufacturers Companies

Trump100% Tariff on Pharma: US President Donald Trump has once again dropped a tariff bomb. Trump announced a tariff of up to 100 percent on the import of branded and patented pharmaceutical drugs from October 1, 2025. This is big news for India, as the pharmaceutical sector is one of the domestic industries most dependent on trade with the US. The Republican president said in a Truthout social post, "Starting October 1, 2025, we will impose a 100 percent tariff on any branded or patented pharmaceutical product, unless the company is building its own pharmaceutical manufacturing plant in the US." We'll tell you here what impact Trump's new tariffs will have on India. First, find out what Trump has decided.

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What decision has Trump made?

Donald Trump wrote, on a social media platform,  "Beginning October 1, 2025, we will impose a 100% tariff on branded or patented pharmaceutical product, unless the company is building a pharmaceutical manufacturing factory in the United States. "Construction underway" will be defined as "breaking ground" and/or "under construction." Therefore, if construction has already begun, there will be no tariffs on these pharmaceutical products. Thank you for your attention!"

What impact will Trump's decision have on India?

This new tariff by Trump will not have much impact on Indian pharmaceutical companies. This is because most Indian companies export generic drugs to the United States, not branded ones. Furthermore, large companies that manufacture and sell pharmaceuticals in the United States already have manufacturing facilities in the United States. Therefore, experts are hopeful that these companies will not be severely affected when the market opens. Sun Pharma is the only company selling branded/patented products in the US. This company also outsources specialized products through CMO facilities (which manufacture drugs or other products on a contract basis for another company) spread across the US and Europe.

India's Pharmaceutical Exports to the US

According to the Pharmaceuticals Export Promotion Council of India, in the fiscal year 2023-2024, 31 percent, or $8.7 billion, of India's total pharmaceutical exports worth $27.9 billion went to the US. According to the report, India supplies more than 45 percent of generic and 15 percent of biosimilar drugs used in the US.

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Summary

Meanwhile big drug companies like Dr. Reddy's, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma, and Glenmark Pharma reportedly generate 30-50 percent of their total revenue from the US market.