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In a decision that could impact the Indian pharma exports and exporters to the United States, the US President Donald Trump has announced the imposition of 100% tariff on imports of branded and patented pharmaceutical drugs from October 1, 2025.
The decision, announced by the US President through his Truth Social account, has already hit the share prices of pharma stocks in India.
In his social media account, President Trump said, "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".
He clarified that "is building" would 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.
It may be noted that the Indian pharma industry has been anticipating some for of tariff to be imposed on the pharma imports to US from India, though Indian exports comprises more of generic drugs.
The pharma stocks of major exporters to the US, including Sun Pharma, Dr Reddy's Laboratories, Cipla Ltd, Zydus Lifesciences, Lupin, among others, has seen their stocks declining soon after the announcement.
Over one-third of the pharma exports from the country is to US, and any significant tariff hike may have an impact on the Indian exports. The exports of drug formulations and biologicals to the US during the year 2024-25 amounted to almost 40% at $9.7 billion out of the overall exports of $24.15 billion.
Exports to the US has been on a rise, around 21 per cent from USD 8.1 billion in FY24 to USD 9.8 billion in FY25.
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