U.S. President Donald Trump on Thursday announced a 100% tariff on imports of branded or patented pharmaceutical products, effective October 1. The move is expected to have major repercussions for key Indian drugmakers.
The announcement extends beyond pharmaceuticals. Trump further stated that 50% import taxes will be levied on kitchen cabinets, 30% on upholstered furniture, and 25% on heavy trucks.
In a separate post on Truth Social, he stated that with the new reforms, he will also be imposing a 25% tariff on all heavy trucks made in other parts of the world, to support U.S. manufacturers such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others.
Trump further stated that the tariffs are being implemented for many reasons—but above all, for national security purposes.
Earlier this year, the Trump administration launched a probe into truck imports to “determine the effects on national security.”
How It Affects India
The U.S. is one of the largest drug markets for Indian drugmakers, especially in the affordable and generic medicines segment.
India exported close to $3.6 billion (₹31,626 crore) worth of pharmaceutical products to the U.S. in 2024, and another $3.7 billion in just the first half of 2025.
Companies including Dr. Reddy’s, Sun Pharma, Lupin, and Aurobindo have long benefited from the U.S. market’s reliance on lower-cost Indian generics.
Trump’s announcement is aimed mainly at branded and patented drugs—segments dominated by multinational giants. However, uncertainty looms over whether specialty medicines from India will also come under scrutiny.
Indian exports are already facing 50% tariffs in the U.S., which, according to Trump, also serve as a punitive measure for India’s continued purchase of Russian oil.
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