US President Donald Trump has announced that, effective October 1, 2025, the United States will impose a 100 percent tariff on branded and patented pharmaceutical imports — a move that could particularly hurt India.

However, the announcement includes a notable exception: companies that are building pharmaceutical manufacturing plants in the US will be exempt from the tariff if they have “broken ground” or are “under construction.” The move is part of a broader tariff package, which also includes 50 % tariffs on kitchen cabinets and bathroom vanities, 30 % on upholstered furniture, and 25 % on heavy trucks.

In 2024, the US imported nearly USD 233 billion in pharmaceutical products, meaning many drugs could see price doubling under the new plan. For India, which is a major exporter of generic and branded medicines, this tariff could disrupt trade significantly — unless Indian firms invest in US manufacturing facilities to avail the exemption.