US President Donald Trump on Thursday announced tariffs of up to 100% on imports of branded and patented pharmaceutical drugs, effective October 1, 2025. The move could significantly affect India’s pharmaceutical sector, which relies heavily on exports to the US.

In a post on Truth Social, Trump stated, “Starting October 1, 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.” He clarified that “building” means breaking ground or being under construction, in which case tariffs would not apply.

The new tariffs also include 50% duty on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks, targeting foreign producers he said were undercutting US companies.

India is particularly exposed, as the US is the largest export market for Indian pharmaceuticals. In FY24, India exported $8.7 billion worth of pharma products to the US, accounting for 31% of its total pharma exports. Indian companies supply over 45% of generic drugs and 15% of biosimilars used in the US, with firms like Dr Reddy’s, Sun Pharma, Aurobindo Pharma, Zydus Lifesciences, and Gland Pharma deriving 30-50% of revenues from the American market.

Although the tariffs primarily target branded and patented drugs, uncertainty remains over whether complex generics and specialty medicines from India could also be affected. The industry is closely monitoring the impact on exports and revenue.