US President Donald Trump has widened the tariff net. He has announced steep duties on a range of products starting October 1. Branded or patented pharma products will face a 100 per cent tariff unless the manufacturer is building a plant in the US.
The move follows fresh investigations under Section 232 of the Trade Expansion Act of 1962, which gives the President broad powers to act on imports deemed a security threat.
It comes even as Trump’s authority to levy tariffs under the International Emergency Economic Powers Act (IEEPA) may get clipped by a US Supreme Court ruling next month.
If struck down, Washington would have to roll back “reciprocal tariffs” already hurting countries like India, which faces a 50 per cent levy on exports such as textiles, footwear and marine products.
For India, the impact of the new pharma tariffs is expected to be limited in the near term, as the country is the world’s largest supplier of generic medicines, which are not covered. However, Indian firms have been moving up the value chain into patented and novel drugs.
Here is what the industry experts have to say about the new set of tariffs. They highlight the limited short-term impact and risks for India’s long-term pharma ambitions.
Not applicable for generic medicines
The executive order refers to patented/branded products supplied to US. It is not applicable to generics medicines.
– Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance
Prudent to remain prepared for future policy shifts and to build risk-mitigation strategies
India has long been a cornerstone of the global supply chain for affordable, high-quality medicines, supplying nearly 47 per cent of the US’ pharma requirements, particularly in the generic drug market. Indian pharma companies continue to ensure the affordability and availability of essential medications—from life-saving oncology drugs and antibiotics to chronic disease treatments—helping stabilise global healthcare systems.
The proposed 100 per cent tariff on branded and patented pharma 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.
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.
– Namit Joshi, Chairman, Pharmexcil
US tariffs not a bitter pill for Indian pharma
The imposition of 100 per cent tariff by the US on imports of branded and patented pharmaceutical products starting October 1, 2025 may not significantly hurt Indian drug makers. That is because exports to the US—accounting for ~20 per cent of the Indian pharmaceuticals market—primarily comprise generic, off-patent medicines which may not come in ambit of these tariffs.To be sure, some domestic formulation makers have niche presence in the branded and patented drugs space, but the contribution of those drugs to their revenue is modest. Moreover, given the largely non-discretionary nature of these products, majority of the tariff cost is likely to be passed through. Some of these domestic companies also have manufacturing facilities in the US, which would make them exempt from the new levies.
Strong balance sheets further support the credit quality of these companies. That said any imposition of further tariffs, pending outcome of the ongoing US Section 232 investigation, remains monitorable.
– Anuj Sethi, Senior Director, Crisil Ratings
This move underscores the need for Indian pharma companies to diversify markets
The recent imposition of 100 per cent tariffs by the US on branded and patented drug imports is not expected to have any material immediate impact on the Indian pharmaceutical industry. India’s strength lies in generic drug exports, which are currently exempt from these tariffs. However, few Indian pharma companies with exposure to non-US domiciled branded formulation/ innovator drug companies, who in turn export to the US, by way of sales of APIs or intermediates to them or undertaking contract manufacturing, may face headwinds. Overall, this move by the US underscores the need for Indian pharma companies to diversify markets, and innovate in complex generics and biosimilars to stay resilient in a changing global trade landscape.
– Deepak Jotwani, VP & Sector Head, Corporate Ratings, ICRA
US tariffs for branded and patented drugs is unlikely to have any immediate impact on India’s generic exports
The recent US announcement on tariffs for branded and patented drugs is unlikely to have any immediate impact on India’s generic exports, which continue to play a vital role in making medicines affordable globally. While it signals a push towards strengthening U.S. domestic manufacturing, Indian pharma remains well-positioned with its strong track record in generics, compliance, and quality. For India, this development underlines the importance of diversifying markets, investing in innovation, and building resilience in supply chains to continue supporting global healthcare needs.
– Bhavin Mehta, Whole-time Director, Kilitch Drugs and Vice Chairman, Pharmexcil
Essential medicines should not become collateral in trade disputes
A 100 per cent tariff on branded and patented drugs risks creating deeper inequities in global healthcare. Essential medicines should not become collateral in trade disputes. At Laborate, we believe this is the moment for Indian pharma to demonstrate leadership not just in supplying alternatives, but in advocating for a global framework where affordability and patient access remain non-negotiable, irrespective of politics or tariffs.
– Parag Bhatia, Director, Laborate Pharmaceuticals