Trump announces 100% tariff on imports of branded, patented pharmaceuticals

United States President Donald Trump on Thursday announced a 100% tariff on the import of branded or patented pharmaceutical products, unless the company was “building” a manufacturing facility in the country.

Building the manufacturing unit will be defined as “breaking ground” and/or the facility being “under construction”, Trump said on social media.

“There will, therefore, be no tariff on these pharmaceutical products if construction has started,” he added.

The levy will take effect on October 1.

India exported pharmaceuticals worth $8.7 billion to the US in 2024, according to Moneycontrol. This accounted for 31% of India’s pharmaceutical exports.

The US healthcare system is dependent on pharmaceutical imports from India.

India supplies nearly half of the generics, or a medicine that is developed to be the same as another that has already been authorised, sold in the US, according to the IQVIA Institute. This helps access to critical medicines at affordable prices.

While tariff on pharmaceuticals is not country-specific, Trump has already imposed so-called reciprocal tariffs on Indian goods and punitive levies for purchasing Russian oil. He has repeatedly alleged that India’s imports were fuelling Russia’s war in Ukraine. The combined tariff rate for India is 50%.

At the time, New Delhi said that it was “extremely unfortunate” that the US had chosen to impose additional tariffs on India “for actions that several other countries are...

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