Trump Announces 100% Tariffs on Pharma Imports
The Wire Staff
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New Delhi: US president Donald Trump has announced tariffs of 100% on branded or patented pharmaceutical product imports into the US, leading to questions on how the Indian pharma sector will cope.
"Starting October 1st, 2025, we will be imposing a 100 per cent Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America," Trump wrote on Truth Social.
""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. Thank you for your attention to this matter," he added.
The latest salvo follows an already punishing 50% tariff imposition on India. However, until now, pharmaceutical goods have been exempt from these tariffs. With less than a week for these levies to come into effect, it is cause for concern for India, for whom the US is the largest export market for pharmaceutical goods.
India's total pharmaceutical exports were almost US$ 28 billion in the 2024-25 financial year, with the US its largest export market at US $8.7 billion, according to the Pharmaceuticals Export Promotion Council of India.
Another $3.7 billion (Rs 32,505 crore) worth of pharma products were exported in just the first half of 2025, NDTV reports.
Trump has also announced a 50% tariff on kitchen cabinets, bathroom vanities and associated products, and a 25% tariff on heavy trucks from October 1.
Meanwhile, the US launched a range of investigations under Section 232 of the Trade Expansion Act of 1962, which gives Trump the power to raise tariffs citing “national security”.
Reuters noted how Trump's latest announcements on Truth Social did not mention whether the new levies would stack on top of existing national tariffs, but notes how recently struck trade deals with Japan, the EU, and the United Kingdom include provisions that cap tariffs for specific products like pharmaceuticals.
This article went live on September twenty-sixth, two thousand twenty five, at nine minutes past twelve at noon.The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.