Trump’s 100% Pharma Tariff: What It Means for Indian Drugmakers

U.S. President Donald Trump has announced a 100% tariff on imported branded and patented pharmaceutical drugs, effective October 1, 2025.

The move aims to incentivize pharmaceutical companies to manufacture drugs within the United States, with exemptions for firms that have already begun construction of U.S.-based facilities.

While this policy targets branded and patented medicines, it has raised concerns for Indian pharmaceutical exporters, who supply a significant portion of the U.S. market.

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Impact on Indian Pharmaceutical Companies

India exported around $10.5 billion worth of pharmaceuticals to the U.S. in 2025, with branded and patented drugs forming a substantial portion.

Companies such as Sun Pharma, Biocon, Cipla, and Dr. Reddy’s Laboratories are among the key Indian exporters that could be affected.

Fortunately, many Indian firms focus heavily on generic drugs, which are not subject to this tariff. Additionally, companies with existing U.S. manufacturing operations may avoid the tariff altogether, mitigating immediate financial impact.

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Market Reaction

Following the tariff announcement, Indian pharma stocks faced a downturn. The Nifty Pharma index fell by 2.67%, and companies like Sun Pharma, Biocon, and Cipla saw stock declines of up to 5%.

Investors are closely monitoring how the policy could affect export revenue and global competitiveness.

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Long-Term Implications

While generics remain largely unaffected for now, industry experts warn that any future extension of tariffs to generic or biosimilar drugs could significantly impact Indian pharmaceutical exports.

Companies are evaluating strategies to expand U.S. production capacity and diversify markets to minimize potential disruptions.

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Conclusion

Trump’s 100% tariff on branded and patented pharmaceutical drugs is a game-changer for global trade in medicines.

For Indian pharma companies, the immediate impact may be limited, but the policy highlights the need for strategic planning in the U.S. market.

Stakeholders are advised to stay vigilant and adapt to evolving trade policies to safeguard their operations and growth.

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