Trump Announces 100% Tariff On Imported Drugs, Sparking Fears for India’s Pharma Sector
US President Donald Trump has announced a steep new 100% tariff on all imported branded or patented pharmaceutical drugs, set to take effect on October 1, in a move that could significantly impact India’s massive drug export industry . The dramatic announcement, made on Trump’s Truth Social platform, is part of a broader tariff blitz aimed at forcing foreign companies to invest in US manufacturing, but it threatens to drive up drug prices for American consumers and disrupt global supply chains .
“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump wrote . He clarified that companies that have already broken ground or are under construction on US-based facilities would be exempt from the tariff . The move is the latest and most aggressive in Trump’s long-standing campaign to use tariffs to boost domestic production .
The announcement has sent shockwaves through India’s pharmaceutical sector, which counts the US as its largest export market . In FY24, nearly a third of India’s $27.9 billion in pharma exports went to the US. While Trump’s order specifically targets “branded or patented” drugs, a segment dominated by multinational giants, there is significant uncertainty over whether complex generics and specialty medicines from India could also be caught in the crossfire .
An SBI Research report from August had already warned that a potential 50% tariff could slash the earnings of Indian pharma companies by 5-10% in FY26, given that major firms like Dr. Reddy’s and Sun Pharma derive up to half their revenue from the US market .
Trump’s latest tariff spree, which he justified on “National Security and other reasons,” also includes a 50% tax on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks, all effective from October 1 . Critics fear the new import taxes will only intensify already elevated inflation in the US and potentially lead to drug shortages .
