Trump Imposes 100% Tariff on Branded Medicines
US President Donald Trump has announced a 100% tariff on branded and patented medicines, effective from October 1, 2025. The new tariff, however, will not apply to pharmaceutical companies that have already established or are in the process of setting up manufacturing plants within the United States.
Clarifying the decision, Trump stated: “From October 1, we will impose a 100% tariff on branded or patented medicines, except those produced by companies investing in US-based plants. Even if construction of a facility has begun, the exemption will apply.”
The move follows an earlier decision in August, when the US imposed a 50% tariff on several Indian products, including textiles, gems and jewellery, furniture, and seafood. At that time, medicines had been kept outside the ambit of the tariff.
Possible Impact on Indian Pharma
Experts believe the latest move may not immediately impact India, which primarily exports generic medicines. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “India, being a major exporter of generics, will not face a significant blow. However, if generics become Trump’s next target, the consequences could be serious.”
India is the world’s largest supplier of generic drugs and the biggest exporter to the US. In 2024, Indian companies exported nearly $8.73 billion worth of medicines to America, accounting for about 31% of India’s total pharma exports. Nearly 40% of prescriptions written in the US are for medicines produced by Indian firms.
Reports suggest that between 2013 and 2022, generic medicines helped the US healthcare system save about $1.3 trillion.
Major Indian pharma giants like Dr. Reddy’s, Sun Pharma, and Lupin manufacture both generics and a limited number of patented drugs, which may now fall under the new tariff regime.
Industry watchers caution that while branded drugs will become costlier, the bigger worry is whether Washington will extend tariffs or restrictions to generics in the near future.
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