Trump Imposes 100% Tariffs On Branded, Patented Drugs From Oct 1: What It Means For India

<p>US President Donald Trump on Thursday announced a 100 percent tariff on imports of branded or patented pharmaceutical products from October 1, a move likely to impact key Indian drugmakers.&nbsp;</p>
<p>In a post on Truth Social, President Trump wrote, “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. ‘IS BUILDING’ will be defined as ‘breaking ground’ and/or ‘under construction.'”</p>
<p>Trump, however, clarified that the companies that have already begun building manufacturing plants in the US will be exempted from the new tariffs.&nbsp;”There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter!” the post read.</p>
<p>Earlier on Thursday, Trump also imposed a 50 percent Tariff on all Kitchen Cabinets, Bathroom Vanities, and associated products, starting October 1. US will also charge a 30 percent tariff on upholstered furniture.</p>
<p>”The reason for this is the large-scale ‘FLOODING’ of these products into the United States by other outside Countries,” Trump said. “It is a very unfair practice, but we must protect, for National Security and other reasons, our Manufacturing process.”</p>
<h3>How India Could Be Affected</h3>
<p>The US is one of the largest drug markets for Indian drugmakers, specifically in the affordable and generic segment. Following Trump’s announcement, the focus is now shifting to Indian Pharma companies, including Aurobindo Pharma Ltd., Gland Pharma Ltd., Lupin Ltd., and Cipla Ltd.&nbsp;</p>
<p>According to Business Today, a 100 percent tariff would double the cost of Indian branded or patented drugs in the US market (assuming no exemptions), making them far less price-competitive. This could reduce revenue, shrink margins, and lead some of the companies to pull back from certain product lines.</p>
<p>A report by analytics firm IQVIA stated that Indian pharmaceutical companies supply a substantial proportion of drugs to the US, with four out of ten of all prescriptions being supplied by Indian companies. “Indian companies supplied 47% of all generic prescriptions filed in the U.S. and 15% of the volume of biosimilars,” it said.</p>
<p>After the earlier tariff threats, the Nifty Pharma Index and shares of companies like Sun Pharma, Dr. Reddy&rsquo;s, Cipla, and Aurobindo reacted negatively. This trend could continue amid mounting uncertainty ahead of the the October deadline.</p>
<p>In August, Trump had warned that tariffs on Pharma imports could reach up to 250%. He had said that he would initially begin by imposing a “small tariff”, and gradually raise it to 150 percent and then 250 percent.</p>