Trump's Tariff Tussle: Impact on Indian Pharma Exports
The US plan to impose 100% tariffs on branded and patented pharmaceuticals won't affect Indian generics, according to the Indian Pharmaceutical Alliance. This move mainly targets patented drugs, while Indian firms continue to lead in generic exports to the US, supplying 47% of its needs.
- Country:
- India
The Indian Pharmaceutical Alliance (IPA) clarified on Friday that US President Donald Trump's decision to impose a 100% import tariff on pharmaceutical drugs beginning October 1, 2025, will primarily affect patented and branded drugs, not the generics sector. IPA's Secretary General, Sudarshan Jain, emphasized that generic medicines are exempt from this tariff.
The announcement came after Trump posted on Truth Social about the impending tariffs, stating they target pharmaceutical companies not manufacturing within the United States. Trump specified that these tariffs apply unless companies have 'breaking ground' or 'under construction' facilities in the US. No tariffs will apply if construction has started.
Representing 23 major Indian pharmaceutical firms, the IPA remains pivotal in India's substantial contribution to the global pharmaceutical supply chain, providing 47% of the US's pharmaceutical needs. These measures, while impactful on certain sectors, will likely have minimal immediate impact on Indian exports, as generics dominate their market role.
(With inputs from agencies.)
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