President Donald Trump announced a significant trade policy shift on September 25, 2025, imposing a 100% tariff on branded and patented pharmaceutical imports starting October 1. This move, part of a broader strategy to bolster U.S. manufacturing, includes exemptions for companies actively constructing production facilities within the United States.

India, known as the "pharmacy of the world," exports over $10.5 billion worth of generic medicines annually, with the U.S. market accounting for more than a third of this total . The new tariffs are expected to impact high-value, branded, or patented formulations, potentially affecting major Indian pharmaceutical companies.

While some Indian firms with U.S.-based manufacturing may be exempt, others without such facilities could face significant challenges. The broader implications include potential retaliatory measures, disruptions in the global pharmaceutical supply chain, and increased drug prices in the U.S.

This development marks a critical juncture in U.S.-India trade relations, with the pharmaceutical sector at the forefront of the ongoing tensions