Trump’s 100% Tariffs Pose Major Challenge for Indian Pharma Industry

US President Donald Trump has once again turned his focus on India, this time targeting the pharmaceutical sector. Posting on Truth Social, Trump announced that beginning October 1, 2025, the US will impose a 100% tariff on branded or patented pharmaceutical products unless the manufacturing takes place in America.This move is expected to hit Indian pharmaceutical companies hard, as the US is India’s largest export destination for pharma products. In FY24, India exported $27.9 billion worth of pharma products, with the US alone accounting for 31% ($8.7 billion).India currently supplies nearly 45% of generic medicines and 15% of biosimilars consumed in the American market. In the first half of 2025 alone, Indian pharma exports to the US touched $3.7 billion (₹32,505 crore).

Pharma giants such as Dr Reddy’s, Sun Pharma, Zydus Lifesciences, Aurobindo Pharma, and Gland Pharma derive 30–50% of their total revenues from the US market. With the new tariff in place, these companies may face rising costs and shrinking profits unless they shift part of their production to America.Trump had earlier imposed 50% tariffs on Indian imports and added a 25% penalty for India’s oil trade with Russia. Justifying his latest move, Trump stated that these measures were necessary for “national security” and to reduce America’s trade deficit.