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Tariff On Branded Pharmaceuticals

US Imposes 100% Tariff On Branded Pharmaceuticals, Raising Concerns For India

September 26, 2025

US President Donald Trump announced that, effective from October 1, 2025, the United States will impose a 100% tariff on imported branded or patented pharmaceutical products.

This measure forms part of a broader package of tariffs, which also includes a 50% levy on kitchen cabinets and bathroom vanities, a 30% tariff on upholstered furniture, and a 25% duty on heavy trucks.

The tariffs are being implemented under Section 232 of the Trade Expansion Act of 1962, which grants the president authority to impose trade restrictions on national security grounds.

The pharmaceutical tariffs are not expected to significantly affect India, given the country’s dominant position as a global supplier of generic drugs.

However, Indian pharmaceutical companies have increasingly invested in patented drugs, and the new tariffs could hinder their efforts to expand in the US market. Tariffs will be waived for branded drugs if the importing company has begun constructing a manufacturing plant in the United States.

The announcement coincides with ongoing debates over the legality of the president’s tariff powers under the International Emergency Economic Powers Act. Any adverse ruling by the US Supreme Court could limit the administration’s ability to impose similar tariffs in the future.

While the immediate impact on India is likely to be limited, the tariffs add to existing trade tensions between the two nations. India has previously faced tariffs of up to 50% on products such as textiles, footwear, and marine goods, affecting employment in these labour-intensive sectors.

Indian policymakers and businesses will need to carefully monitor the evolving trade landscape and consider strategies to mitigate potential impacts from the new tariffs.

ALSO READ | India Is A Major Drug Transit Nation: US President

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