Washington/New Delhi: In a move that could have far-reaching implications for global pharmaceutical trade, former U.S. President Donald Trump has declared that starting October 1, 2025, all branded and patented pharmaceutical imports will face a 100% tariff—unless companies are actively establishing manufacturing facilities within the United States.
The announcement was made via Trump’s official Truth Social account, where he stated that the tariffs will apply to any branded pharmaceutical product not being produced or under construction in the U.S. The former president emphasized that projects which have “broken ground” or are “under construction” would be exempt from the levy.
“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,” Trump posted, using all-caps for emphasis.
This is the latest in a series of aggressive tariff measures from Trump, who has previously introduced significant duties on products ranging from furniture to heavy trucks. The rationale provided—though lacking legal detail—pointed to “national security and other reasons”, indicating a continued push toward economic nationalism and domestic industrial revival.
India’s Pharma Industry on Alert
India, which plays a crucial role in supplying affordable medicines to the U.S., is closely watching developments. The U.S. is India’s largest pharmaceutical export destination, accounting for roughly 31% of the country’s total pharma exports.
In FY24, India exported pharmaceutical products worth $27.9 billion, of which $8.7 billion went to the U.S., according to data from the Pharmaceuticals Export Promotion Council of India. In just the first half of 2025, India shipped another $3.7 billion in pharma goods to the American market.
While Trump’s latest policy appears to target branded and patented drugs, largely produced by multinational giants, industry experts in India fear possible spillover effects on complex generics and specialty medicines, which are a fast-growing segment.
Indian pharma giants such as Sun Pharma, Dr. Reddy’s Laboratories, Aurobindo Pharma, Zydus Lifesciences, and Gland Pharma generate 30% to 50% of their revenues from the U.S. market. Many of them operate on narrow profit margins, especially in the generics space, and a sudden imposition of tariffs could disrupt pricing structures, squeeze margins, and trigger price hikes in the U.S. healthcare system.
Consequences for U.S. Consumers and Healthcare
Industry analysts caution that such tariffs could backfire domestically in the U.S., leading to higher drug prices, increased insurance premiums, and potential shortages—especially for generics that are largely sourced from Indian manufacturers.
“Indian firms are the backbone of the U.S. generic drug supply chain. Sudden cost pressures could either force them to raise prices or scale back exports, both of which will hit the American patient,” said a senior pharmaceutical analyst based in Mumbai.
Furthermore, there are concerns that Trump’s tariff threat could undermine global supply chain stability, especially as India and the U.S. have been collaborating on pharmaceutical resilience and pandemic preparedness.
Additional Tariff Actions Fuel Trade Tensions
Trump’s latest tariff rollout also includes:
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50% duty on kitchen cabinets and bathroom vanities
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30% on upholstered furniture
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25% on heavy trucks
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50% tariffs on Indian imports, alongside a 25% penalty for India’s ongoing energy trade with Russia
These moves have raised eyebrows not only in India but across several U.S. trade partners, as Trump’s economic policy continues to emphasize protectionism ahead of the 2024 U.S. presidential elections.
As of now, New Delhi has not issued an official response, but trade observers anticipate that bilateral discussions may intensify, particularly if the tariffs are expanded or start affecting generic exports.
For India’s pharma exporters, October 1 is now a looming deadline. The focus, in the weeks ahead, will likely shift toward securing exemptions, re-negotiating trade terms, and possibly accelerating investments in U.S.-based manufacturing—all in a bid to retain market access to the world’s largest pharmaceutical consumer.
