A sweeping wave of U.S. tariffs—led by a 100% tax on imported branded pharmaceuticals—is threatening to derail billions in Indian exports, putting pressure on pharma giants, MSMEs, and key manufacturing sectors. The tariffs, effective October 1, are aimed at forcing foreign companies to localize production in the U.S. Advertisement

100% tariff on branded/patented drugs

Applies to all imported branded or patented drugs unless the exporter is actively building a U.S. plant (defined as “under construction” or “breaking ground”).

Generic drugs are not directly targeted, but complex generics and specialty medicines may face scrutiny.

Impact:

The U.S. is India’s largest pharma market ($3.6B in 2024, higher in 2025 YTD).

Sun Pharma, Dr. Reddy’s, Cipla, and Aurobindo are heavily exposed.

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