US President Donald Trump has announced that from October 1, his government will impose 100% import tariffs on branded or patented pharmaceutical drugs. The rule won’t apply to companies that already have, or are building, manufacturing plants in the United States.
For India, the move may not cause major disruptions. The US accounts for more than one-third of India’s pharma exports, worth about $10.5 billion in FY25. However, most of these exports are low-cost generic medicines, which are not affected by the tariff.
Some big Indian drugmakers, including Dr Reddy’s, Cipla, and Lupin, also sell patented medicines in the US. But these companies already operate US-based factories, reducing their risk. Biocon too recently opened a manufacturing site in New Jersey. Sun Pharma is one of the few players that could face some short-term impact until it reveals its US expansion plans.
Industry experts believe generics and biosimilars are safe for now, though there is some uncertainty about the future. Namit Joshi, head of the Pharmaceuticals Export Promotion Council, confirmed that India doesn’t export patented drugs to the US, so the impact should be minimal.
Despite this reassurance, Indian stock markets dipped. Pharma shares fell the most, with Sun Pharma and Natco Pharma losing ground.
