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India Monitors US Tariffs’ Impact on Pharmaceutical Imports

  • 27 Sep 2025

On 26th September 2025, India’s Ministry of External Affairs (MEA) said it is closely monitoring the impact of US President Donald Trump’s announcement to impose up to 100% tariffs on branded and patented pharmaceutical drug imports from October 1, 2025.

Key Points

  • US Announcement: The US will impose a 100% tariff on branded and patented pharmaceutical products unless companies are actively constructing manufacturing facilities in the US.
  • Exemptions: Companies already building plants in the US will not face tariffs; generics and APIs are excluded from the measure.
  • India’s Export Profile: India exported around USD 10 billion worth of medicines to the US in FY25, mostly generics and APIs, which are not impacted by the tariff order.
  • Global Role of India: The Indian pharma sector supplies 50% of global vaccine demand, 40% of generics in the US, and 25% of all medicines in the UK.
  • Export Growth: India’s pharmaceutical exports reached a record USD 30 billion in FY25, with a 31% YoY surge in March and a 6.94% rise in August 2025 compared to August 2024.