US President Donald Trump has targeted India yet again. Taking to Truth Social, Trump announced a massive 100% tariff on pharmaceutical products. “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,” Trump wrote in his post.
Trump’s latest announcement on imposing a 100% tariff on pharmaceutical products will severely hit Indian pharma companies. The USA is India’s largest export market for pharmaceutical products. In FY 24, 31% ($8.7 billion) of India’s $27.9 billion pharma exports were exported to the US.
India supplies 45% of generic and 15% of biosimilar drugs consumed in the American market. Trump’s latest announcement will significantly affect the Indian pharmaceutical companies, as they are heavily dependent on trade with America. Indian pharma companies have exported over $3.7 billion (Rs 32,505 crore) worth of pharma products to the USA in the first half of 2025.
Indian pharma giants such as Dr Reddy’s, Aurobindo Pharma, Zydus Lifesciences, Sun Pharma, and Gland Pharma reportedly earn close to 30%-50% of their total revenues from the American market. These firms may find it difficult to retrieve costs with the 100% tariffs.
Trump had earlier slapped 50% tariffs on Indian imports, including a 25% penalty for India’s continued purchase of oil from Russia. The fresh tariffs would force major pharma companies to commence building their manufacturing plants in the US. While the new tariffs would reduce the deficit in America’s national budget, Trump maintains that these tariffs are crucial for “national security.”
Related