India’s government is keeping a close watch on a major trade move from the US that could shake up the pharmaceutical industry. On Friday, the Ministry of External Affairs (MEA) said officials are monitoring the effects of President Donald Trump’s plan to slap tariffs of up to 100% on imports of branded and patented pharmaceutical drugs, starting October 1, 2025.
MEA spokesperson Randhir Jaiswal shared this update during a weekly briefing. “We spotted a notice on social media yesterday about these new tariffs,” he said. “Our relevant ministries and departments are tracking the situation closely and looking into its potential impact on pharmaceutical products and more.”
Trump’s announcement targets big multinational pharma companies, hitting their branded and patented drugs unless they build manufacturing plants in the US. The US stands as India’s top market for pharmaceutical exports, making up about 35% of the total and worth around $10 billion in the fiscal year 2025.
In a post on Truth Social, Trump laid it out clearly: “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.” He defined “building” as breaking ground or starting construction. Companies already underway on US plants get a pass—no tariffs for them.
This pharma tariff news comes amid a wave of broader US trade actions. Trump also unveiled steep tariffs on everyday imports like kitchen cabinets, furniture (where prices have already jumped), trucks, and other goods, as CNN reported.
The good news for India? These 100% tariffs skip generic medicines, which form the bulk of what Indian companies send to the US. Experts say the impact on India should be limited since the country mainly exports affordable generics and active pharmaceutical ingredients (APIs).
Sudarshan Jain, general secretary of the Indian Pharmaceutical Alliance (IPA), backs this up. “This applies to patented branded products made outside the US,” he explained. “It doesn’t touch generics, and that’s what India supplies most to the US—about $10 billion worth, mostly generics and APIs. So, India likely won’t feel much sting from this.”
India’s pharma powerhouse status shines through globally. The country meets over 50% of the world’s vaccine needs, supplies 40% of the US generic drug demand, and covers 25% of all medicines in the UK. Exports hit a record $30 billion in FY25, with a 31% jump in March alone. Just in August 2025, drug and pharmaceutical exports rose 6.94% to $2.51 billion from $2.35 billion the year before, according to government data.
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