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India exports a important magnitude of pharmaceutical drugs to the US. (AI image)
US President Donald Trump’s latest announcement of 100% tariffs imported branded oregon patented pharmaceutical products has sent shockwaves done pharma companies astir the world.Trump announced connected Truth Social that effectual October 1, 2025, a 100% tariff volition beryllium applicable connected imported branded oregon patented pharmaceutical products entering the United States, with exemptions for manufacturers actively constructing drug-manufacturing facilities wrong US borders.“Starting October 1st, 2025, we volition beryllium imposing a 100% Tariff connected immoderate branded oregon patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant successful America.
“IS BUILDING” volition beryllium defined as, “breaking ground” and/or “under construction.” There will, therefore, beryllium nary Tariff connected these Pharmaceutical Products if operation has started. Thank you for your attraction to this matter!” helium posted connected Truth Social.So however bash the latest circular of tariffs from Trump interaction India and the world. According to Ajay Srivastava, laminitis of Global Trade and Research Initiative (GTRI), portion exports of Indian generics whitethorn stay mostly unaffected, European nations, specifically Ireland, Switzerland, and Germany, whitethorn spot important effects from the tariffs.
How volition Trump’s 100% pharma tariffs interaction India?
India exports a important magnitude of pharmaceutical drugs to the US. However, the commercialized is majorly focused connected generic medications alternatively than branded products.
- DGCI&S statistic uncover India's pharmaceutical formulation exports to the US reached $9.8 cardinal successful FY2025, representing 39.8% of its full pharmaceutical exports.
- India's pharmaceutical exports to the United States chiefly dwell of finished formulations and medicaments, highlighting its presumption arsenic a salient centre for cost-effective generic drugs.
- The export catalogue includes tablets, capsules and injectable medications for treating conditions similar hypertension, diabetes, infections, cardiovascular ailments and neurological conditions.
- Antibiotics signifier a important portion, including amoxicillin, azithromycin, and ciprofloxacin, alongside vitamin supplements specified arsenic "vitamin D3, B-complex, and multivitamin" products.
- The export scope extends to hormone treatments, medicines for ulcers and diabetes, symptom alleviation medications, corticosteroids, alkaloid-based products, contraceptives and specialised medications for cancer, viral infections and respiratory conditions.
“This absorption connected off-patent and generic formulations whitethorn shield overmuch of India’s commercialized from the afloat interaction of the caller US tariff regime,” says GTRI.However, GTRI flags the explanation of ‘branded’ drugs. India supplies some branded and unbranded generic medicines to the United States.
Branded generics correspond a communal class - generic compounds marketed nether circumstantial marque names. For example, "paracetamol" tin beryllium exported either arsenic a earthy worldly oregon arsenic tablets nether brands similar "Crocin".If US authorities classify these branded generics arsenic "branded imports", these products mightiness look the 100% tariff, contempt being off-patent. This classification remains unclear, pending authoritative American ineligible documentation for definitive clarification.“This is simply a constituent of confusion. We indispensable hold for US ineligible documents to accidental this with certainty,” says GTRI.“For now, India’s low-cost generic exemplary whitethorn connection a cushion against the daze of Trump’s tariff. Policymakers and exporters volition beryllium watching intimately for clarifications from Washington successful the coming days to measure the stock if each of India’s $9.8 cardinal pharmaceutical commercialized with the US volition enactment unaffected oregon look disruption successful branded merchandise lines,” it adds.The Ministry of External Affairs (MEA) has said that it is thoroughly evaluating the consequences of Trump's determination to levy tariffs connected pharma products.During a play media interaction, MEA Spokesperson Randhir Jaiswal confirmed that assorted authorities departments and ministries are assessing the concern and studying its imaginable implications."We saw a announcement yesterday connected societal media that talked astir caller tariffs.
We've seen the study connected pharma and different products, and the applicable ministry and section are intimately monitoring the substance and examining its impact," Jaiswal said.
Which companies successful India are the apical exporters of medicines to US?
A prime radical of large Indian pharmaceutical manufacturers dominates exports to the US market, contributing astir 70% of each shipments. According to GTRI, the salient companies see Zydus Lifesciences Limited, Dr. Reddy's Laboratories Limited, Lupin Limited, Aurobindo Pharma Limited, Hetero Labs Limited, Sun Pharmaceutical Industries Limited, Eugia Pharma Specialities Limited, Cipla Limited, Glenmark Pharmaceuticals Limited, APL Healthcare Limited, Gland Pharma Limited, MSN Laboratories Private Limited, Amneal Pharmaceuticals Private Limited, Mylan Laboratories Limited, Granules India Limited, Alkem Laboratories Limited, Annora Pharma Private Limited, Alembic Pharmaceuticals Limited, Dr.
Reddy's Laboratories Limited Formulation Unit 7, and Unichem Laboratories Limited.
Trump’s 100% pharma tariffs: What volition beryllium the planetary impact?
US import statistic from 2024 bespeak full pharmaceutical imports valued astatine $212.82 billion, with India contributing $12.73 billion, equivalent to 5.98%. In comparison, Ireland led with $50.35 cardinal (23.66%), followed by Switzerland astatine $19.03 cardinal (8.94%), and Germany astatine $17.24 cardinal (8.10%).These European nations, specialising successful high-value branded and patented medications, are apt to acquisition the strongest archetypal effects of the caller tariff policy, according to a GTRI analysis.European exports dwell chiefly of premium-priced branded and patented medications from salient companies similar Roche, Novartis, Sanofi, Bayer, and GSK. In response, galore companies are expanding their American investments.The Wall Street Journal reports that implicit 12 pharmaceutical companies, including Eli Lilly, AstraZeneca, Roche Holding, and GSK, person committed much than $350 cardinal towards American manufacturing, R&D, and proviso concatenation improvement by 2030.However, the European Union connected Friday said that an statement reached successful July with the US provided extortion against tariffs exceeding 15% connected pharmaceutical exports.According to an AFP report, EU commercialized typical Olof Gill said: "This wide all-inclusive 15 percent tariff ceiling for EU exports represents an security argumentation that nary higher tariffs volition look for European economical operators."A European pharmaceutical assemblage organisation cautioned that imposing duties connected medicines would "create the worst of each worlds.""Tariffs summation costs, disrupt proviso chains and forestall patients from getting life-saving treatments," declared Nathalie Moll, manager wide of the European Federation of Pharmaceutical Industries and Associations.The caller US argumentation determination faced absorption from its state Australia, which sent pharmaceutical goods valued astatine astir $1.35 cardinal to the United States successful 2024, arsenic documented by the UN's Comtrade Database.Australian Health Minister Mark Butler said that the accrued rates were "not successful the American consumers' interest... peculiarly fixed the grade to which their exporters to Australia payment from that escaped commercialized arsenic well."
