&imwidth=800&imheight=600&format=webp&quality=medium "Bitter Pill for Indian drugmakers: Trump’s 100% drug tariff could give India a headache worth BILLIONS. Here's how")
US President Donald Trump on Thursday announced sweeping new tariffs, including a 100 per cent duty on branded or patented pharmaceutical imports starting 1 October. The move is designed to push companies to manufacture inside the United States.
“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. ‘IS BUILDING’ will be defined as, ‘breaking ground’ and/or ’under construction,’” Trump wrote.
The measures go beyond medicines. Trump also said 50 per cent import taxes will apply to kitchen cabinets, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks.
Why are trucks included?
In another post, Trump announced a 25 per cent tariff on all heavy trucks imported from abroad, arguing it was needed to protect American firms such as Peterbilt, Kenworth, Freightliner and Mack Trucks. He said the decision was taken “for many reasons, but above all else, for National Security purposes!” Earlier this year, his administration launched a probe into imported trucks to assess their impact on national security.
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Why does this matter for India?
The United States is India’s largest market for medicines, particularly affordable generics. In 2024, India exported $3.6 billion (₹31,626 crore) worth of pharmaceutical products to the US, followed by $3.7 billion (₹32,505 crore) in just the first half of 2025. Indian companies such as Dr Reddy’s, Sun Pharma, Lupin and Aurobindo have long benefited from America’s dependence on lower-cost generics.
While Trump’s announcement is targeted at branded and patented drugs, mainly dominated by multinational giants, uncertainty remains over whether complex generics and speciality drugs from India might also be affected.
Indian exports are already under strain
Indian exports to the US are already facing 50 per cent tariffs, which Trump has said also carry a 25 per cent “penalty” because of India’s continued purchase of Russian oil.
