Trump Imposes 100% Tariffs on Drugs, Raising Concerns for Indian Pharma Exports
Move aimed at boosting US domestic manufacturing; Indian drugmakers brace for export challenges.
Washington, Sept 26: In a major escalation of his trade policies, US President Donald Trump on Friday announced sweeping tariffs, declaring that imported pharmaceutical drugs will face a 100% duty starting October 1, 2025, unless companies establish manufacturing facilities within the United States.
In a post on Truth Social, Trump said the tariffs were being imposed for “national security purposes” to reduce reliance on overseas drugmakers and strengthen domestic pharmaceutical production. Alongside, the administration announced a 25% tariff on heavy-duty trucks and a 50% tariff on imported kitchen cabinets, citing the need to support American manufacturers such as Peterbilt, Kenworth, Freightliner, and Mack Trucks.
The new measures are expected to significantly affect Indian pharmaceutical companies, which have long benefited from strong demand in the US market by supplying low-cost generic drugs. While the order primarily targets branded and patented pharmaceuticals—a sector dominated by multinational firms—analysts warn that Indian exporters could face indirect repercussions due to increased trade friction and supply-chain disruptions.
The announcement follows a series of tariff escalations by the Trump administration. In August, the US President imposed a combined 50% duty on imports, including a 25% levy tied to national security concerns and an additional penalty on Indian purchases of Russian oil.
Industry experts say the new drug tariff could reshape global pharma trade flows, compelling multinational companies to reconsider supply chains and investments in the US, while creating uncertainty for Indian pharma exporters who rely heavily on the American market.
