US 100% Tariff Targets Branded Pharma, Indian Generics Exempt Amid Export Growth

The U.S. President Donald Trump announced a 100% import tariff on branded and patented pharmaceutical products starting October 1, 2025, targeting drugmakers not manufacturing in the U.S. However, this tariff excludes generic medicines, which constitute the majority of Indian pharmaceutical exports to the U.S. Indian industry bodies, including the Indian Pharmaceutical Alliance (IPA), emphasize that the tariff will not immediately impact generic drug exports but warn it may prompt some companies to reconsider manufacturing strategies, including potentially shifting production to the U.S. or diversifying export markets. The tariff raises concerns among Indian pharmaceutical manufacturers, especially regarding branded generics, which may face new challenges due to tariff classifications and regulatory hurdles in rebranding. Despite these challenges, Indian firms remain key suppliers of affordable medicines to the U.S., supplying substantial portions of prescriptions and supporting global healthcare affordability.