The US government announced that, starting from October 01, 2025, all branded and patented pharmaceutical products imported into the country will face a 100% tariff on imported pharmaceutical drugs unless the manufacturers are building production facilities in the US. Donald Trump clarified that ‘IS BUILDING’ refers to either breaking ground or being under construction. The measure aims to encourage domestic pharma production and reduce dependence on imports.
Will India be impacted?
India exports nearly 40% of its pharmaceutical products to the US. Analysts say the tariff could reduce earnings of Indian pharma companies by 5–10% in FY26. Firms earning 40–50% of revenue from the US market may face cost pressures and competitiveness challenges.
