US President Donald Trump has announced a 100% tariff on imported branded and patented pharmaceutical products, effective October 1, 2025. This decision is expected to significantly impact India's pharmaceutical sector, which heavily relies on exports to the United States.

In a post on Truth Social, Trump stated, "Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America." He clarified that companies already under construction for manufacturing plants in the US would be exempt from these tariffs.

The announcement also included tariffs on other products, such as a 50% tariff on kitchen cabinets and a 30% tariff on upholstered furniture. Trump justified these tariffs as necessary for national security and to support American manufacturers. He mentioned that the tariffs are a response to what he described as the "flooding" of foreign products into the US market, which he believes undermines domestic manufacturing.

The Indian pharmaceutical industry, known for producing low-cost generic drugs, stands to face significant challenges due to this tariff. The sector has benefited from its strong presence in the US market, and the new tariffs could lead to increased costs and reduced competitiveness.

This move follows a series of tariffs imposed by the Trump administration, including a 50% tariff on various imports and penalties targeting Indian purchases of Russian oil. The overall impact of these tariffs on the Indian economy and the global pharmaceutical market remains to be seen.