New Delhi: The Ministry of External Affairs (MEA) on Friday said India is closely monitoring the potential impact of US President Donald Trump’s announcement to impose tariffs of up to 100% on imports of branded and patented pharmaceutical drugs, effective from October 1, 2025. The announcement has sparked concerns among exporters and policymakers, given that the US is one of India’s largest pharmaceutical markets.
MEA response and monitoring
During a weekly briefing, MEA Spokesperson Randhir Jaiswal stated that relevant ministries and departments are examining the situation and assessing its potential effects.
He said, “We saw a notice yesterday on social media that talked about new tariffs. We’ve seen the report on pharma and other products, and the relevant ministry and department are closely monitoring the matter and examining its impact.”
The tariffs specifically target branded and patented pharmaceuticals, potentially affecting multinational pharmaceutical companies operating in the US.
Details of Trump’s tariff announcement
Earlier on Friday, President Trump posted on Truth Social, stating:
“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. ‘IS BUILDING’ will be defined as ‘breaking ground’ and/or ‘under construction.'”
He clarified that companies which had already begun construction of plants in the US would be exempt from the tariff.
The move is part of a broader set of trade measures, which also include tariffs on imported kitchen cabinets, furniture, and trucks, all aimed at boosting domestic manufacturing.
Impact on India’s pharmaceutical exports
Experts have noted that the tariff primarily affects patented or branded products, while generic medicines remain unaffected.
Sudarshan Jain, General Secretary of the Indian Pharmaceutical Alliance (IPA), said:
“This applies to patented branded products manufactured outside the US. It does not apply to generics, as India supplies the US mostly with generic products. India exports around USD 10 billion worth of medicine to the US. They consist primarily of generic products and APIs. So India is not likely to be impacted by this order.”
India’s pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US, and 25% of all medicines in the UK.
In FY25, India’s annual drug and pharmaceutical exports touched a record USD 30 billion, bolstered by a 31% year-on-year surge in March. Government data also show exports increased 6.94% from USD 2.35 billion in August 2024 to USD 2.51 billion in August 2025.
Conclusion
While the US announcement has raised alarms, India’s export profile, heavily weighted toward generics and APIs, suggests limited direct impact. Authorities and industry experts continue to monitor developments to safeguard trade interests.