US President Donald Trump has announced steep new tariffs on imported pharmaceutical drugs, starting October 1, 2025. Branded and patented medicines will face duties of up to 100% unless companies are building factories in the United States. Trump said this move would boost local manufacturing and help reduce America’s budget deficit.
He clarified that “IS BUILDING” means construction has already begun. If companies start building plants in the US, their products will not face tariffs. Alongside medicines, the administration also raised duties on other goods: 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks.
India could be hit hard. The US is India’s largest pharmaceutical market, accounting for 31% of its $27.9 billion exports in FY24. In fact, India supplies nearly half of the US’s generic medicines and a significant share of biosimilars. Companies like Sun Pharma, Dr Reddy’s, and Aurobindo Pharma depend heavily on American sales.
While the new tariffs mainly target branded and patented drugs, there is uncertainty about whether complex generics or specialty medicines will be included. If applied broadly, US consumers could face higher drug prices, shortages, and inflation, while Indian firms would struggle with thin profit margins.
