Last Updated on September 26, 2025 6:59 pm by BIZNAMA NEWS
By R. Suryamurthy
U.S. President Donald Trump has announced tariffs of up to 100% on branded and patented pharmaceutical imports beginning October 1, 2025, a move that could unsettle global supply chains and rattle India’s $10-billion drug exports to America.
“Starting October 1st, we will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company is building their manufacturing plant in America,” Trump said in a late-night post on Truth Social. He clarified that “building” meant facilities that have “broken ground or are under construction.”
The new measures widen Trump’s aggressive tariff regime, which already covers metals and consumer products. He also announced 50% duties on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks, citing “national security and other reasons.”
India’s Stakes
The U.S. is India’s largest pharmaceutical market, accounting for nearly 40% of India’s $27.9 billion pharma exports in FY24. In FY25, exports to America totaled $9.8 billion, led by low-cost generics and off-patent formulations. Major Indian firms such as Dr. Reddy’s, Sun Pharma, Aurobindo, Lupin, Cipla and Zydus draw between 30–50% of their revenues from the U.S. India also supplies almost half of America’s generic drugs by volume.
While the policy seems aimed at multinational giants dominating patented medicines, uncertainty looms over “branded generics”—off-patent drugs marketed under brand names. If these fall under Washington’s definition of “branded” imports, Indian companies could face unexpected exposure.
Europe Seen as Bigger Casualty
Economists say Europe may bear the brunt, with Ireland, Switzerland and Germany—together supplying over 40% of U.S. pharma imports—reliant on branded and patented drugs. Global majors such as Roche, Novartis, GSK and Bayer have already pledged more than $350 billion in U.S. investments to offset tariff risks.
Neil Shearing, chief economist at Capital Economics, noted that stockpiling of medicines may already have taken place ahead of the tariffs. Exemptions for generics and U.S.-based plants, he said, could soften the blow.
Cushion for India’s Generics—For Now
Analysts believe India’s generics-heavy portfolio offers some protection. “While branded players abroad will face headwinds, Indian generics could even gain as higher branded prices push demand toward cheaper alternatives,” said Manoj Mishra, partner at Grant Thornton Bharat.
Still, thin margins in generics and possible tariff extensions to complex or branded generics worry industry executives. New Delhi is seeking clarity from Washington before gauging the scale of disruption.
For now, Trump’s tariff salvo threatens to redraw the global pharma map, forcing Big Pharma to ramp up U.S. investments while keeping India’s exporters cautiously shielded. As one trade analyst warned: “The devil will lie in the definitions—whether Washington only squeezes multinationals or drags Indian firms into the net.”
