India's first reaction to Trump's 100% tariffs on drug imports: ‘Closely monitoring’

By Admin

27 Sep, 2025

MEA’s Response to Trump’s Pharma Tariffs

India’s Ministry of External Affairs (MEA), along with other relevant ministries and authorities, has announced that it is “closely monitoring” the recent decision by US President Donald Trump to impose 100% tariffs on imports of branded and patented pharmaceutical products. The new tariffs are set to take effect from 1 October 2025.

On Friday, 26 September 2025, Randhir Jaiswal, the official spokesperson of the MEA, said:
“We saw a notice yesterday on social media that talked about new tariffs. We've seen the report on pharma and other products, and the relevant ministry and department are closely monitoring the matter and examining its impact.”

Trump’s Announcement

President Trump made the announcement on 25 September 2025 via Truth Social, stating that any branded or patented pharmaceutical product entering the United States would face a 100% tariff unless the manufacturer is currently building a plant in the US.

Trump clarified that “IS BUILDING” would be defined as breaking ground and/or under construction. This exemption effectively encourages global pharma companies to invest in US manufacturing to avoid tariff penalties.

Potential Impact on Indian Pharma Exports

India is among the top suppliers of pharmaceuticals to the United States. According to data cited by Al Jazeera from the Observatory of Economic Complexity (OEC), the US imported nearly $86.4 billion worth of packaged medicines in 2023. Of this, 10.6% or $9.2 billion came from India.

India’s dominance in the generics market is particularly notable. In the first half of 2025, Indian exporters shipped $3.7 billion worth of generic drugs to the United States, making India the largest supplier.

However, market experts suggest that while the headline risk is high, the operational risk is relatively low for Indian pharma exporters. This is because generics, OTC drugs, biologics, and speciality drugs are excluded from the new tariff measures, falling under a separate Section 232.

Balancing Risks and Opportunities

The tariff policy could present challenges for Indian companies exporting branded drugs, particularly those without a manufacturing footprint in the US. However, India’s strong position in the generics sector and its relatively lower exposure to branded drug exports may cushion the impact.

For now, the MEA has confirmed that it will continue monitoring the developments and coordinate with relevant ministries to assess the situation.

Looking Ahead

As the new tariffs come into effect on 1 October 2025, Indian pharma exporters, policymakers, and trade analysts will be watching closely. With India playing a critical role in supplying affordable medicines globally, any shift in US trade policy could have ripple effects on both markets.

The coming weeks will determine whether Indian pharma companies view Trump’s tariffs as a hurdle or as an incentive to deepen investments in US manufacturing.