Indian Generic Medicines Unaffected by Trump's 100% Pharmaceutical Import Tariff

Indian pharmaceutical companies primarily export generic medications to the United States market.

New Delhi:

The Indian Pharmaceutical Alliance (IPA) announced on Friday that President Donald Trump's decision to implement 100% import tariffs on pharmaceutical drugs starting October 1 will only affect patented and branded products, leaving generic medicines unaffected.

IPA Secretary General Sudarshan Jain clarified in a statement, "It is not applicable to generics medicines." He emphasized that Trump's announcement specifically targets patented and branded products supplied to the US.

In his post on Truth Social, Trump stated, "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 further explained that "IS BUILDING" means "breaking ground" and/or "under construction," adding that "There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started." The IPA represents 23 leading Indian pharmaceutical companies, including Dr Reddy, Sun Pharma, Lupin, and Zydus Lifesciences.

IPA members collectively drive over 80% of India's pharmaceutical exports and serve more than 64% of the domestic market.

Pharmexcil Chairman Namit Joshi commented, "India has long been a cornerstone of the global supply chain for affordable, high-quality medicines, supplying nearly 47% of the US's pharmaceutical requirements.

"The proposed 100% tariff on branded and patented pharmaceutical imports is unlikely to have an immediate impact on Indian exports, as the bulk of our contribution lies in simple generics and most large Indian companies already operate US manufacturing or repackaging units and are exploring further acquisitions." He noted that current Section 232 investigations appear focused elsewhere and have not specifically addressed generics, though he advised preparedness for potential policy changes and developing risk-mitigation strategies.

"Looking ahead, India will need to reinforce its cost-efficiency advantage in bulk drugs and APIs -- an area where the US is likely to favor India over other suppliers -- and simultaneously invest in next-generation opportunities such as complex generics, peptides, biosimilars and CAR-T therapies," he added.

Indian pharmaceutical companies primarily export generic medications to the US market.

Indian pharmaceutical companies provide a significant portion of medications to US residents, with four out of ten prescriptions filled in the US in 2022 being supplied by Indian companies.

According to industry sources, medicines from Indian companies generated $219 billion in savings for the US healthcare system in 2022 and a total of $1.3 trillion between 2013 and 2022.