US President Donald Trump on Thursday announced steep tariffs of up to 100 per cent on imports of branded and patented pharmaceutical drugs, starting October 1, 2025, a move that could severely hit India’s pharmaceutical exports to its largest market.

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

The Republican leader clarified that “IS BUILDING” would mean either “breaking ground” or “under construction,” exempting companies that have begun setting up facilities in the US.

Wider tariff push

The pharma tariffs are part of Trump’s latest protectionist blitz, which also includes:

  • 50% duty on kitchen cabinets and bathroom vanities
  • 30% duty on upholstered furniture
  • 25% duty on heavy trucks

While Trump did not cite legal grounds, he claimed the duties were essential “for National Security and other reasons.”

How India could be impacted

America is India’s largest pharmaceutical export market. According to the Pharmaceuticals Export Promotion Council of India, out of India’s $27.9 billion pharma exports in FY24, nearly 31% ($8.7 billion or ₹7.72 lakh crore) went to the US. In the first half of 2025 alone, exports worth $3.7 billion were recorded.

India currently supplies over 45% of generic drugs and 15% of biosimilars used in the US. Major Indian firms such as Dr Reddy’s, Sun Pharma, Aurobindo Pharma, Zydus Lifesciences, and Gland Pharma derive between 30–50% of their revenues from the American market.

Though Trump’s announcement specifically targets branded and patented drugs—segments led by multinational companies—industry watchers warn that complex generics and speciality medicines from India may also face scrutiny.

Risks for US consumers

American patients rely heavily on low-cost Indian generics, and analysts caution that higher tariffs could trigger:

  • Drug price hikes
  • Inflationary pressures in the healthcare sector
  • Shortages of essential medicines

Indian pharma companies, already operating on thin profit margins in the US, may find it difficult to absorb higher costs and could be forced to pass them on to consumers or insurers.

Previous tariff actions

This is not the first time Trump has hit Indian trade. He has already imposed 50% tariffs on Indian imports, including a 25% penalty levy linked to India’s continued purchase of Russian oil.