Washington: U.S. President Donald Trump on Friday unveiled a new trade policy imposing a 100 per cent tariff on all imported branded or patented pharmaceutical products starting October 1, unless the manufacturer is already establishing a production facility within the United States. The move is part of the administration’s “America First Manufacturing” initiative, designed to incentivize global companies to localize drug production.
According to U.S. import data for 2024, total pharmaceutical imports (HS 30) were valued at USD 212.82 billion. India accounted for USD 12.73 billion, or 5.98 per cent, largely in generic medicines. In contrast, European suppliers—including Ireland (USD 50.35 billion, 23.66%), Switzerland (USD 19.03 billion, 8.94%), and Germany (USD 17.24 billion, 8.10%)—are expected to bear the brunt of the tariffs due to their focus on high-value branded and patented drugs.
Data from India’s Directorate General of Commercial Intelligence and Statistics (DGCI&S) shows that India exported USD 9.8 billion worth of pharmaceutical formulations to the U.S. in FY2025, representing nearly 40 per cent of its total pharma exports. These exports mainly include tablets, capsules, and injectables for hypertension, diabetes, infections, cardiovascular, and neurological conditions, as well as widely used antibiotic formulations such as amoxicillin, azithromycin, and ciprofloxacin, along with vitamins and nutritional products.
A Global Trade Research Initiative (GTRI) statement highlighted that India’s focus on generics rather than patented drugs may insulate much of its trade from the full impact of the tariff. However, ambiguity remains regarding “branded generics”—generic molecules sold under brand names. For example, paracetamol could be exported as a bulk drug or as a branded tablet like Crocin.
Currently, India’s U.S. pharma exports are concentrated among a handful of major companies, which collectively supply roughly 70 per cent of shipments. Most of these consist of off-patent formulations crucial to the U.S. healthcare system.
While European nations brace for a sharp hit, several global pharmaceutical giants—including Roche, Novartis, AstraZeneca, Eli Lilly, and GSK—have already pledged investments exceeding USD 350 billion in U.S. manufacturing, research, and supply chain infrastructure by 2030.
