Finance
US President Donald Trump proposed tariffs of up to 100% on imported branded and patented prescription products beginning October 1, 2025. The action might have a substantial impact on the Indian pharmaceuticals sector, which relies heavily on trade with foreign countries, mainly the United States.
In a post on Truth Social, the US President stated, “Starting October 1, 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 added in his post on Truth Social, “’IS BUILDING’ will be defined as, “breaking ground” and/or “under construction.” There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter.”
The latest tariff spree also included 50 per cent duty on imports of kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks.
Foreign producers, President Trump stated, were undercutting US companies.
“Furniture and cabinetry are flooding the United States. Heavy trucks and parts are hurting our own producers. Tariffs are needed — for National Security and other reasons,” President Trump said.
The moves come just weeks after the White House unveiled earlier trade frameworks and import duties.
President Trump has already imposed 50% tariffs on Indian goods, along with a 25% ‘penalty’ for continuing to buy Russian oil.
The latest action may impact the Indian pharmaceutical industry because, according to NDTV, America is India’s top export market for pharmaceutical goods. According to the Pharmaceuticals Export Promotion Council of India, 31 percent of India’s $27.9 billion in pharmaceutical exports in FY 24 went to the United States, totaling $8.7 billion (Rs 7,72,31 crore). Another $3.7 billion (Rs 32,505 crore) in pharmaceutical products were shipped in the first half of 2025.
According to statistics, India supplies more than 45% of generic and 15% of biosimilar pharmaceuticals used in the United States. Companies such as Dr Reddy’s, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma, and Gland Pharma reportedly derive 30-50 percent of their entire revenue from the American market.
Although the latest American levies appear to target branded and patented drugs, which are dominated by multinational corporations, it is unclear whether sophisticated generics and specialty medicines from India will also be targeted, according to the media report.
Source: IANS
