Trump's 100% Tariff on Pharma Products to Impact Indian Exports
Although U.S. President Donald Trump has been threatening for a while, many believed that he would not target the pharma sector. The primary reason for this was that if tariffs were imposed on pharma companies, the impact would inevitably fall on the American public as well. With the increased tariffs, companies would have to pass some of the costs onto consumers, resulting in price hikes. This was the main reason why most people thought Trump would avoid targeting the pharma sector. But, this is Donald Trump... He never hesitates to make decisions that affect the American people. Now, he has turned his attention to the pharma sector as well. Recently, he revealed this in a post on his social media platform, Truth. He announced a 100% tariff on selected pharma products. This news has caused a stir in the Indian markets because a large portion of pharmaceutical exports from India goes to the U.S.
As a result, the recently imposed tariffs by Trump are likely to have a severe impact on Indian pharma companies. Immediately after Trump's announcement, shares of pharma companies in domestic stock markets registered massive losses. Everyone is aware of how volatile Trump's decisions can be. It remains to be seen whether he will stick to this decision on the 100% tariffs on pharma or if there will be any changes along the way. It is already well known that Trump previously imposed a 50% tariff on India in an unprecedented manner. Now, he has once again swung the tariff sword on pharma. Starting from October 1, 2025, he announced a 100% tariff on branded and patented pharmaceutical products.
He also mentioned that if a company has its pharmaceutical factory in the U.S., this tariff would be exempt. For companies that have started operations in the U.S. or are still in the construction phase, no tariffs would be imposed. In addition to the pharma sector, Trump has also announced a 50% duty on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and a 25% tariff on heavy trucks, all of which will come into effect starting October 1. With ongoing discussions regarding tariffs with India, the sudden announcement of a 100% tariff on the pharma sector has raised questions about Trump’s agenda. India’s pharmaceutical exports are valued at nearly $30 billion annually. Of this, approximately $9 billion is directed toward the U.S. market. According to these figures, Trump’s recent decision is likely to have a significant impact on India’s pharma sector.
