In a sweeping new trade policy move, U.S. President Donald Trump has announced a 100 per cent tariff on all branded and patented pharmaceutical products imported into the United States, effective October 1. India, a major exporter of generic drugs and Active Pharmaceutical Ingredients (APIs), may see a limited impact — at least for now. The new measure targets only patented and branded medications, which form a smaller share of India’s pharma exports to the US. However, the administration introduced a key exemption: companies actively building pharmaceutical manufacturing facilities in the US will not be subject to the tariff.
According to Trump, this includes firms that have “broken ground” or are “under construction” by the deadline. “There will be no tariff if construction has started,” Trump posted on his social media platform, Truth Social, adding that the policy aims to bring pharmaceutical manufacturing back to the US.
“President Trump’s 100 per cent tariff on branded and patented pharmaceutical imports is a wake-up call for global pharma exporters. While India’s generics remain largely insulated for now, the move signals a shift toward protectionism that could reshape future access,” Ram Chintalapudi, CMD Skinska Pharmaceutica, told The Pioneer.
Trump takes the tariffs scalpel to pharma. Indian pharmaceutical companies with US-focused branded portfolios — or long-term plans in innovation and biologics — may need to accelerate local production plans in America to avoid future disruptions.
In 2024, the US imported nearly $233 billion worth of pharmaceutical and medicinal products, according to Census Bureau data. Analysts warn that doubling prices on patented drugs could sharply increase healthcare costs, particularly under Medicare and Medicaid, adding pressure on American consumers ahead of the 2026 elections.
