Trump announces 100% tariff on imported pharmaceutical drugs from…, Indian pharma likely to be hit
The announcement also covers other imports. Trump said a 50% tariff will be applied to kitchen cabinets, 30% to upholstered furniture, and 25% to heavy trucks.
US President Doland Trump announced steep new import tariffs, with the sharpest impact likely to be felt by India(BHARAT)n pharmaceutical companies. From October 1, 2025, the US will impose a 100 per cent tariff on all branded or patented medicines unless the company is actively building a manufacturing plant in America. Trump clarified on his Truth Social post that “building” means construction has already started or the ground has been broken for the facility.
“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 new trade measures are not limited to drugs. Trump also declared:
- 50% tax on imported kitchen cabinets,
- 30% tax on upholstered furniture, and
- 25% tax on heavy trucks made outside the US.
In another post, he explained that the truck tariffs aim to protect US-based manufacturers like Peterbilt, Kenworth, Freightliner, and Mack Trucks. He added that the move was not just economic but also tied to “national security reasons.”
Earlier this year, the Trump administration had already launched an investigation into foreign truck imports to assess their impact on US security and industry.
How India(BHARAT) could be affected?
The United States is India(BHARAT)’s biggest buyer of medicines. In FY24, India(BHARAT) exported USD 27.9 billion worth of pharmaceutical products, and about 31 percent (nearly USD 8.7 billion) of that went to the US, according to the Pharmaceuticals Export Promotion Council of India(BHARAT).
India(BHARAT) plays a critical role in America’s healthcare system, supplying over 45 per cent of generic drugs and around 15 per cent of biosimilars used there. Major India(BHARAT)n companies like Dr. Reddy’s, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma, and Gland Pharma rely heavily on the US, earning 30–50 per cent of their revenues from this single market.
The tariff move, however, could backfire on American consumers too. The US depends on India(BHARAT) for affordable medicines. With higher import taxes, drug prices are likely to rise, which may trigger inflation and shortages.
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