• Source:JND
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US President Donald Trump's decision to impose 100 per cent tariff on branded or patented pharmaceutical products will not have much of an impact on Indian generic exports to the North American country, said Namit Joshi, Chairman of the Pharmaceuticals Export Promotion Council of India (PHARMEXCIL) on Friday.

Joshi said India's main pharma exports to SA are generic medicines. 

India exports about USD 11 billion worth of pharma products to the USA out of a total 30 billion worldwide.

“We don't export any patented and branded drugs to the US. Right now, it is not for generics. We don't foresee much of an impact of this notification on the Indian generic pharmaceutical industry,” Joshi told news agency PTI.

What Trump has announced?

Starting October 2025, the US will be imposing a 100 per cent tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America, Trump said in a social media post. “IS BUILDING” will be defined as “breaking ground” and/or “under construction,” he added.

There will, therefore, be no tariff on these Pharmaceutical Products if construction has started, US President Trump said in a post.

Why is the Indian pharmaceutical sector largely spared?

The Indian pharmaceutical sector faces limited direct impact from Trump's latest tariff announcement. The prime reason is the policy targets branded and patented drugs while explicitly sparing generic medicines.

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India is the world's largest supplier of generics to the US, with exports of these affordable, off-patent drugs reaching about $20 billion annually—accounting for roughly 90 per cent of its pharma shipments to the market.

Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, said, "This is applicable to patented and branded products manufactured outside US. It is not applicable to generics. India supplies mostly generic products to the US. India exports around $10 billion medicine to the US. They consist primarily of generic products and APIs. So India is not likely to be impacted with this order."

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Indian drug import

India's pharmaceutical exports to the United States reached $8.953 billion in FY25, a 14.2 per cent increase from the previous year. According to official trade data, the US remains a key market for Indian pharma exports, accounting for more than one-third of the country's total pharma exports.

In FY25, India's overall pharma exports surpassed $30 billion, with the US, UK, Brazil, France, and South Africa being the top destinations. However, the latest announcement would not pose any threat to Indian pharma companies as they do not export any patented and branded drugs to the US.

How drugmakers reacted to Trump's tariff announcement

Earlier in August, when Trump announced to impose 200 per cent tariff on pharma industry, drugmakers have argued that tariffs could increase the chance of shortages and reduce access for patients. They have lobbied Trump to phase in tariffs in hopes of reducing their impact and granting them extra time to shift manufacturing.

ALSO READ: India's Pharma Hit By Trump Tariff But US Patients May Feel It More: 5 Key Impacts On America

The companies have global manufacturing footprints, and moving more production to the US involves a major commitment of resources and could take years, they argue. "Every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or the development of future treatments and cures for patients," Alex Schriver, spokesman for industry group PhRMA, said in a statement.

(With inputs from agencies)