Trump Slaps 100% Tariff on Branded Pharma Imports, Limited Impact Seen on Indian Drugmakers

ORIGINALLY PUBLISHED IN DE MODE

Article Published on: 27TH SEP 2025 | www.demodemagazine.com

US President Donald Trump announced a 100% tariff on imported branded or patented pharmaceuticals effective October 1, 2025, unless the exporting company is actively building manufacturing facilities in the US. He clarified that “IS BUILDING” refers to projects that have broken ground or are under construction, exempting such companies from the tariff. Trump also imposed new tariffs: 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks to shield domestic manufacturers.

The announcement rattled Indian pharmaceutical stocks, with Zydus falling 4.34%, Sun Pharma down 2.5%, and Cipla, Dr Reddy’s, and Apollo Hospitals also slipping. However, analysts expect limited direct impact on Indian exporters, as most shipments to the US are generic drugs, not branded or patented ones. ICICI Direct Research noted India exported nearly $10 billion worth of pharma products to the US last year, mostly generics.