Washington, Sep 26 (NationPress) - On Thursday, US President Donald Trump announced the imposition of tariffs reaching up to 100% on imports of branded and patented pharmaceutical drugs, set to begin on October 1, 2025. This decision may have a significant negative impact on the Indian pharmaceutical industry, which relies heavily on international trade, especially with the US.

In a statement shared on Truth Social, President Trump emphasized, “Beginning October 1, 2025, we will impose a 100% Tariff on any branded or patented Pharmaceutical Product, unless a company is actively BUILDING their pharmaceutical manufacturing facility in America.”

He further clarified that “BUILDING” would be defined as either “breaking ground” or “under construction.” Therefore, pharmaceutical products will be exempt from tariffs if their construction has commenced. Thank you for your attention to this matter.

This tariff announcement also included a 50% duty on imported kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks.

According to President Trump, foreign manufacturers are undercutting US companies.

“The US market is being overwhelmed by furniture and cabinetry imports. Heavy trucks and their parts are adversely affecting our domestic producers. Tariffs are essential for National Security and other reasons,” stated President Trump.

This latest move follows the White House's previous announcements regarding trade frameworks and import duties.

Previously, President Trump implemented 50% tariffs on Indian imports, which included a 25% penalty for ongoing purchases of Russian oil.

This new tariff will adversely affect India's pharmaceutical sector as the US is India's largest export destination for pharmaceutical products. In FY 24, out of India's total pharma exports valued at $27.9 billion, 31%, or $8.7 billion (approx. Rs 7,72,31 crore), was directed to the US, according to the Pharmaceuticals Export Promotion Council of India. Furthermore, in just the first half of 2025, another $3.7 billion (approx. Rs 32,505 crore) worth of pharmaceutical products were exported.

Reports indicate that India supplies over 45% of generic drugs and 15% of biosimilar medications utilized in the US. Companies like Dr Reddy's, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma, and Gland Pharma reportedly derive between 30% to 50% of their total revenue from the American market.

While the recent US tariffs appear to primarily target branded and patented drugs—a sector largely controlled by multinational corporations—there is uncertainty regarding whether complex generics and specialty medicines from India will also be scrutinized, according to NDTV.