Last Updated:
Industry watchers caution that the final impact hinges heavily on the tariff’s fine print
Donald Trump on Friday announced sweeping new tariffs of 100 per cent on imports of branded and patented pharmaceutical drugs starting October 1, 2025.
US President Donald Trump on Friday announced sweeping new tariffs of 100 per cent on imports of branded and patented pharmaceutical drugs starting October 1, 2025, in a move aimed at pushing foreign drugmakers to shift production to America.
“Starting October 1st, 2025, we will be imposing a 100 per cent tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America,” Trump posted on Truth Social. He clarified that “is building” will mean “breaking ground” or “under construction,” effectively exempting companies that have already begun work on US-based facilities.
Recommended Stories
Industry Voices Play Down Immediate Impact
The announcement sparked concern in India, one of the world’s largest suppliers of medicines to the US. But industry voices stressed that the immediate impact may be limited.
“The executive order refers to patented and branded products supplied to the US. It is not applicable to generic medicines,” said Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA).
An industry veteran pointed out that Trump’s language itself suggests that India’s mainstay exports — generics — may not fall under the tariff. “Trump’s post says branded or patented. It possibly exempts generics, which is what Indian companies export to the US. Maybe some fine print and details need to come out. If generics are included, then it’s a big blow,” the veteran said.
“But again, most big Indian exporters have at least one plant in the US, so I guess those will be exempted. We need to study the details when clarifications come. Usually, the President makes statements and clarifications follow in a couple of days.”
A senior official from a pharma trade lobby echoed the point, adding: “It has to be seen what the proportion of branded sales from India is. But yes, many big companies have already started thinking of or building their plants in the US.”
Nikkhil K Masurkar, CEO, Entod Pharmaceuticals, also said: “This move won’t significantly impact India, as the proposed 100 per cent tariff appears targeted at patented and branded medicines. India’s strength lies in supplying affordable generics to the US market, not patented or branded drugs. Since generics, which make up the bulk of India’s pharmaceutical exports, are so far excluded from these tariffs, Indian exports to the US should remain unaffected. The UK and the EU, however, with their stronger focus on patented and branded medicines, are likely to feel a much greater impact. Such tariffs could also push up the prices of patented and branded medicines in the US, increasing the burden on patients and healthcare systems.
Indian pharma firms have minimal presence in the US originator/brand market. The portion of Indian-origin exports that are branded/patented is best characterised as being between 1 and 3 per cent, to be conservative.”
Namit Joshi, Chairman of Pharmexcil, underlined India’s critical role in the global supply chain. He said, “India has long been a cornerstone of the global supply chain for affordable, high-quality medicines, supplying nearly 47 per cent of the US’ pharmaceutical requirements, particularly in the generic drug market. Indian pharmaceutical companies continue to ensure the affordability and availability of essential medications—from life-saving oncology drugs and antibiotics to chronic disease treatments—helping stabilise global healthcare systems.”
“The proposed 100 per cent tariff on branded and patented pharmaceutical imports is unlikely to have an immediate impact on Indian exports, as the bulk of our contribution lies in generics. Most large Indian companies already operate US manufacturing or repackaging units and are exploring further acquisitions. Current investigations under Section 232 appear focused elsewhere and have not taken a direct call on generics. Nonetheless, it is prudent to remain prepared for future policy shifts and to build risk-mitigation strategies,” Joshi added.
“Looking ahead, India will need to reinforce its cost-efficiency advantage in bulk drugs and APIs, while investing in next-generation opportunities such as complex generics, peptides, biosimilars and CAR-T therapies. Generics will remain relevant but will gradually mature; optimising costs and capabilities in these emerging categories will shape the next phase of growth. Pharmexcil will continue to engage with global stakeholders to ensure that dialogue on these developments remains constructive and that the global supply of affordable, high-quality medicines remains uninterrupted,” he said.
Indian Pharma Already Has A US Footprint
Top pharmaceutical companies, including Sun Pharma, Glenmark, Lupin and Zydus, maintain operations in America. Sun Pharma runs API manufacturing in the US, while Glenmark Pharmaceuticals operates a site in Monroe, North Carolina, focused on oral solids and injectables. Dr Reddy’s Laboratories has long maintained plants in Louisiana, New York and Tennessee.
Other firms, too, have expanded aggressively. Dr Reddy’s, Cipla, and Aurobindo have already established a US operational and manufacturing footprint, strengthening their position against policy risks. Aurobindo Pharma has broken ground on a new pharmaceutical manufacturing facility in East Windsor, New Jersey, spanning 170,000 sq ft, while its US arm, Aurolife Pharma, runs a manufacturing unit in North Carolina.
Alkem Laboratories’ biotech arm, Enzene Biosciences, has inaugurated a manufacturing facility in New Jersey as part of a $70 million investment. Syngene International, a subsidiary of Biocon, acquired its first biologics manufacturing facility in Baltimore in 2025, giving it an on-shore biologics presence.
Industry watchers, however, cautioned that the final impact hinges heavily on the fine print, particularly whether “complex generics” or biosimilars could be swept in. For now, many major Indian firms already have or are building US manufacturing capacity, which could shield them from the broader tariff threat.
Generics Dominate India’s Exports To The US
Industry sources told News18 that the bulk of India’s drug shipments to the US are low-cost generics, while exports of patented and branded drugs are “negligible”. For now, Indian drugmakers are awaiting clarifications, which usually follow within days of such announcements.
The consensus: while the rhetoric sounds tough, the practical effect on India’s $25-billion pharma export industry is expected to be minimal.
Trump’s latest tariff blitz also targeted other sectors, with a 50 per cent duty on imports of kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks.
About the Author
Himani Chandna, Senior Associate Editor at CNN News18, specialises in healthcare and pharmaceuticals. With firsthand insights into India’s COVID-19 battle, she brings a seasoned perspective. She is particular…Read More
Himani Chandna, Senior Associate Editor at CNN News18, specialises in healthcare and pharmaceuticals. With firsthand insights into India’s COVID-19 battle, she brings a seasoned perspective. She is particular… Read More
September 26, 2025, 12:09 IST
Loading comments…
Read More
 "China cracks down on pessimism: New campaign targets negative social media posts")
