Trump Tariff on Pharma: India’s pharmaceutical exports, a sector that is highly dependent on the US market, have come under scrutiny after US President Donald Trump decided to slap a 100% tariff on branded and patented pharmaceutical imports starting on October 1.

Trump said the additional tariffs would be in effect unless businesses were “building” pharmaceutical plants in the United States, which is defined as “breaking ground” or “under construction.”

According to the Census Bureau, the United States imported around $233 billion worth of pharmaceutical and medical goods in 2024. Voters may be shocked by the possibility of some medications’ prices doubling as health care expenditures, along with Medicare and Medicaid costs, may rise. Trump had previously indicated that tariffs would be implemented gradually to give businesses time to establish plants and move operations, so the pharmaceutical medication revelation was startling.

100% Tariffs on Pharma: How will India be Affected

‘Pharmacy of the World’ is a common moniker for India. According to the industry group India Brand Equity Foundation, it supplies 20% of the world’s generic medications, contributes 60% of vaccines, and has the greatest number of US FDA-approved plants outside of America. Approximately 79% of India’s pharmaceutical exports are formulations and biologics.

India’s top destinations for pharmaceutical exports in FY25 (April–December) were the US, UK, South Africa, the Netherlands, and France, totaling ₹1.87 lakh crore ($21.7 billion). In 2024–2025, India’s overall pharmaceutical exports to the world totaled above $30 billion. With 31% of India’s pharmaceutical exports in 2024–2025 going to the US, the US is the country’s single-largest pharmaceutical market. According to the Pharmaceutical Export Promotion Council of India, India sent $3.6 billion worth of medications to the United States in 2024 and an additional $3.7 billion in the first half of 2025 alone.

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Will the Tariff Impact Specialized Medications in India?

Although Trump’s announcement specifically targets copyrighted medications, a market that is controlled by global corporations, there are still worries that sophisticated generics and specialized medications from India may also be subject to examination. Even though Trump decided to target copyrighted medications, which were completely controlled by the global corporations. There is still some doubt about some of the sophisticated generics and also some of the specialized medications from India, which might also be examined.

Analysts caution that Indian exporters may experience a decline in margins and market share if patented and expensive generics are subject to tariffs. Large companies may seek to diversify their exports to Europe, Africa, and Latin America, while smaller businesses that primarily rely on US sales may feel the pinch.

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