Trump’s latest tariff announcement has limited direct impact on the Indian pharmaceutical sector, primarily because it targets branded and patented drugs, while explicitly excluding generics.
US President Donald Trump’s decision to impose a 100% tariff on branded or patented pharmaceutical products is unlikely to significantly affect Indian generic drug exports to the US, said Namit Joshi, Chairman of the Pharmaceuticals Export Promotion Council of India (PHARMEXCIL), on Friday.
Joshi noted that India’s primary pharmaceutical exports to the United States are generic medicines. Of the country’s total $30 billion in global pharma exports, around $11 billion is directed to the US.
“We don’t export any patented or branded drugs to the US. The current tariff move does not apply to generics, so we don’t anticipate any significant impact on the Indian generic pharmaceutical industry,” Joshi told news agency PTI.
Details of Trump’s Announcement
Starting October 2025, the United States will impose a 100% tariff on all branded or patented pharmaceutical products, unless the manufacturer is actively building a production facility in the country, President Trump announced in a social media post.
He clarified that “building” refers to facilities that have “broken ground” or are “under construction.” Products from such projects will be exempt from the tariff, he added.
Why the Indian Pharma Sector Faces Minimal Impact
The Indian pharmaceutical sector is largely unaffected by Trump’s latest tariff announcement, as the policy targets branded and patented drugs while explicitly exempting generics.
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, explained, “The tariff applies to patented and branded products manufactured outside the US and does not affect generics. Since India mainly supplies generic medicines and active pharmaceutical ingredients (APIs) to the US—valued at about $10 billion—it is unlikely to be impacted by this order.”
Indian Pharmaceutical Imports
Indian pharmaceutical exports reached $8.953 billion in FY25, marking a 14.2% increase from the previous year. Official trade data shows that the US remains a crucial market, accounting for over one-third of India’s total pharma exports.In
FY25, India’s overall pharmaceutical exports exceeded $30 billion, with key destinations including the US, UK, Brazil, France, and South Africa. However, the recent tariff announcement is unlikely to affect Indian pharma companies, as they do not export patented or branded drugs to the US.
The companies have manufacturing operations worldwide, and shifting more production to the US requires a significant investment of time and resources, they argue.“Every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or in developing future treatments and cures for patients,” said Alex Schriver, spokesperson for industry group PhRMA, in a statement.
Jyoti Gupta 
Harsh Kumar