Trump’s 100% pharma tariff from October: Is India’s $8.7 billion drug export lifeline at risk?

Donald Trump has announced a 100% tariff on branded and patented drug imports from Oct 1, 2025. With India heavily dependent on the US pharma market, the shock move raises serious concerns.

America’s latest tariff storm has rattled the global pharmaceutical industry. US President Donald Trump on Thursday declared a 100% tariff on all branded and patented drug imports starting October 1, 2025, a move that could dramatically disrupt India’s $8.7 billion drug trade with America.

“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...” - President Donald J. Trump pic.twitter.com/z5EXQhw1xK

— The White House (@WhiteHouse) September 25, 2025

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Trump, posting on Truth Social, insisted the tariffs were aimed at pushing pharmaceutical giants to “build in America”, clarifying that only companies breaking ground on US manufacturing plants would be exempt. The announcement comes just weeks after his earlier wave of duties on kitchen cabinets, furniture, and trucks, signaling an intensifying protectionist streak.

For India, the world’s largest supplier of low-cost generics, the stakes are enormous. The US accounts for 31% of India’s total pharma exports, with companies like Sun Pharma, Dr Reddy’s, Zydus, Aurobindo, and Gland Pharma relying on the American market for up to half of their revenues.

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While Trump’s order specifically mentions branded and patented drugs, largely dominated by multinational giants, industry experts fear a grey zone: will complex generics and specialty medicines from India also fall under the scanner? If so, India’s competitive pricing model could collapse, squeezing margins and forcing companies to pass higher costs to US consumers.

Ironically, American households may feel the pinch first. The US relies on India for 45% of its generics and 15% of its biosimilars. Any tariff-related disruption could trigger drug shortages, price inflation, and pressure on insurers, undermining Trump’s claim of defending national security.

With Washington already slapping 50% tariffs on Indian imports and a 25% penalty for Russian oil trade, this latest blitz has sharpened trade tensions. 

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