Washington, Sep 26: US President Donald Trump on Friday announced a 100 percent tariff on “branded and patented pharmaceutical imports,” effective October 1, 2025, unless companies establish manufacturing facilities within the United States.
“Starting October 1, 2025, we will be imposing a 100 percent tariff on any branded or patented pharmaceutical product, unless a company is building its pharmaceutical manufacturing plant in America,” Trump stated on his social media platform. He clarified that the tariff will not apply to companies that have already commenced construction, defining “building” as “breaking ground” or “under construction.”
The announcement is expected to significantly impact countries like India, whose pharmaceutical sector heavily depends on the US market. India’s pharma exports to the US reached USD 4.96 billion in May 2025, marking a 7.38 percent year-on-year growth, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil).
This move is part of Trump’s broader trade strategy to reduce US dependence on foreign supply chains, strengthen domestic manufacturing, and promote national security. The administration has already imposed a 50 percent tariff on Indian goods and an additional 25 percent “penalty tariff” linked to India’s continued purchase of Russian oil.
The 100 percent pharmaceutical tariff joins other recent measures, including duties of 50 percent on kitchen cabinets and bathroom vanities, 30 percent on upholstered furniture, and 25 percent on heavy-duty trucks. Trump described these measures as part of his ongoing effort to reduce the US trade deficit and boost domestic production under the “Make America Great Again” (MAGA) agenda.
Indian pharmaceutical exporters are closely monitoring the situation, as the tariffs could disrupt global supply chains and affect the competitiveness of Indian generics and patented drugs in the US market.