Trump's Pharmaceutical tariffs: Indian pharma imports to be affected

President Donald Trump announced that the US will impose a 100% tariff on branded and patented pharmaceutical products, which will come into effect on October 1, 2025. The move is likely to affect India's pharma industry as the US serves as the largest market for the country's drugmakers. And even the users back there will face, as healthcare expenses, Medicare, and medicaid costs may significantly increase. 

However, there is an exception to this. Those companies that are establishing manufacturing plants in the United States will not be charged with the tariff. Taking to his account on Truth Social, Trump wrote, "Starting October 1, 2025, we will be imposing a 100 percent tariff on any branded or patented Pharmaceutical product unless a company IS BUILDING their pharmaceutical manufacturing plant in America. 'IS BUILDING' will be defined as 'breaking ground' and/or 'under construction.'"

He also stated that those companies that have already begun constructing plants in America will be exempted from the tariff. Adding, "There will, therefore, be no Tariff on these Pharmaceutical products if construction has started. Thank you for your attention to this matter." 

Apart from this, the Trump administration has also announced broad tariffs on household goods, which include imported kitchen cabinets, bathroom vanities, and some types of furniture. Heavy trucks will also be charged with 25 percent tariffs. 

Defending the tariffs, Trump said that the US market is flooded with foreign products. He stated, "The reason for this is the large-scale 'FLOODING' of these products into the United States by other outside countries. It is a very unfair practice, but we must protect, for National Security, and other reasons, our manufacturing process." 

According to the Census Bureau, the US had imported pharmaceutical and medicinal products worth around $233 billion. Out of these, India alone exported $3.6 billion (Rs 31,626 crore), followed by $3.7 billion (Rs 32,505 crore) in the first half of 2025. 

The announcement comes when India is already facing 50% tariffs in the US, which also includes an additional penalty charge of 25% for buying Russian oil.