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US 100% tariff on branded pharma products unlikely to have any impact on Indian generic drug exports: Industry experts
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Shardul Nautiyal, Mumbai
September 30 , 2025
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The imposition of 100 per cent tariff on branded and patented drug imports into the US from October 1, 2025 is unlikely to have any impact on Indian generic drug exports as most of the exports to the US are generics and active pharmaceutical ingredients (APIs), according to Dr. Viranchi Shah, National Spokesperson, the Indian Drug Manufacturers’ Association (IDMA).
The US President Donald Trump’s announcement of the imposition of tariff through his Truth Social account, has hit the share prices of pharma stocks in India. The US President announced on September 25, 2025 a 100% tariff on branded and patented pharmaceutical imports, effective October 1, 2025, unless companies establish manufacturing facilities in the United States. According to official sources, the move has the potential to unsettle the USD 20 billion industry that supplies nearly 40 per cent of US generics.
Announcing the imposition of tariffs, the US President Donald Trump on September 25, 2025 had said, “Starting October 1st, 2025, we will be imposing a 100% 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.” There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started.”
Dr Shah further added that based on the US President tweet, all branded and patented pharma products are subject to 100 import tariffs from October 1, 2025. For further clarification, we will have to wait till the executive order is out because the executive order will clearly spell out the details on branded and patented products.
Dr. Shah elaborated that India’s exports to the US last year was USD 9.8 billion. Most of the exports to the US are generics and APIs. Out of the USD 9.8 billion pharma exports, India does not have any significant export of patented and branded pharma products being manufactured in India. All our exports are generic formulations and APIs and therefore 100% tariff is not likely to have any impact on Indian pharmaceutical companies operating in the US market.
European countries are expected to face the most immediate and severe impact from the new US tariffs on imported branded or patented pharmaceutical products, while India may remain less affected for now, according to Global Trade Research Initiative (GTRI).
"US import data for 2024 shows total pharmaceutical imports (HS 30) valued at USD 212.82 billion, with India contributing USD 12.73 billion or 5.98 per cent of the total. By contrast, Ireland accounted for USD 50.35 billion (23.66 per cent), Switzerland for USD 19.03 billion (8.94 per cent) and Germany for USD 17.24 billion (8.10 per cent). These European countries, which supply high-value branded and patented drugs, are expected to face the most immediate and severe impact from the new tariffs," as per GTRI records.
According to Namit Joshi, chairman of the Pharmaceuticals Export Promotion Council of India (Pharmexcil), “The proposed 100% tariff on branded and patented pharmaceutical imports is unlikely to have an immediate impact on Indian exports, as the bulk of our contribution lies in simple generics and most large Indian companies already operate US manufacturing or repackaging units and are exploring further acquisitions. Current investigations under Section 232 appear focused elsewhere and have not taken a direct call on generics. Nonetheless, it is prudent to remain prepared for future policy shifts and to build risk-mitigation strategies.”
He further said, “Looking ahead, India will need to reinforce its cost-efficiency advantage in bulk drugs and APIs, an area where the US is likely to favour India over other suppliers, and simultaneously invest in next-generation opportunities such as complex generics, peptides, biosimilars and CAR-T therapies. Generics will remain relevant but will gradually mature; optimising costs and capabilities in these emerging categories will shape the next phase of growth. Pharmexcil will continue to engage with global stakeholders to ensure that dialogue on these developments remains constructive and that the global supply of affordable, high-quality medicines remains uninterrupted.”
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