Donald Trump announces a 100% tariff on all imported medicines from October 1, 2025, unless companies manufacture in the U.S., threatening India’s pharmaceutical exports and reshaping global trade.
New Delhi : U.S. President Donald Trump has announced a sweeping new measure to impose tariffs on imported medicines, set to take effect from Wednesday, October 1. Under the new policy, all branded and patent-protected drugs entering the United States will face a 100 percent import duty. However, Trump has clarified that pharmaceutical companies establishing manufacturing facilities within the U.S. will be exempt from the tariff. The move has significant implications for India’s pharmaceutical industry, which remains heavily reliant on the American market.
Trump made the announcement on his social media platform, Truth Social, stating that starting October 1, 2025, the U.S. will levy a full 100 percent tariff on all eligible imported medicines unless the companies producing them invest in domestic manufacturing. He further emphasized that the tariffs are not limited to the trade policy introduced in August but are part of a broader initiative to expand tariff application across multiple sectors. According to Trump, the purpose of the tariffs is twofold: to reduce the federal budget deficit and to boost domestic production within the United States.
In addition to pharmaceuticals, the former president announced that a 50 percent import duty would be applied to various kitchen and bathroom products, while home furnishing items would be subjected to a 30 percent tariff. Large trucks carrying goods manufactured abroad will also face a 25 percent import duty when entering the U.S.
For Indian pharmaceutical companies, the U.S. market is a critical source of revenue. In 2024, Indian drug manufacturers exported medicines worth ₹31,626 crore to the United States, and in the first half of 2025 alone, exports reached ₹32,505 crore. Analysts warn that Trump’s new tariff measures could jeopardize India’s access to this lucrative market, placing considerable pressure on domestic pharmaceutical firms and potentially reshaping global trade dynamics in the sector.
New Delhi : U.S. President Donald Trump has announced a sweeping new measure to impose tariffs on imported medicines, set to take effect from Wednesday, October 1. Under the new policy, all branded and patent-protected drugs entering the United States will face a 100 percent import duty. However, Trump has clarified that pharmaceutical companies establishing manufacturing facilities within the U.S. will be exempt from the tariff. The move has significant implications for India’s pharmaceutical industry, which remains heavily reliant on the American market.
Trump made the announcement on his social media platform, Truth Social, stating that starting October 1, 2025, the U.S. will levy a full 100 percent tariff on all eligible imported medicines unless the companies producing them invest in domestic manufacturing. He further emphasized that the tariffs are not limited to the trade policy introduced in August but are part of a broader initiative to expand tariff application across multiple sectors. According to Trump, the purpose of the tariffs is twofold: to reduce the federal budget deficit and to boost domestic production within the United States.
In addition to pharmaceuticals, the former president announced that a 50 percent import duty would be applied to various kitchen and bathroom products, while home furnishing items would be subjected to a 30 percent tariff. Large trucks carrying goods manufactured abroad will also face a 25 percent import duty when entering the U.S.
For Indian pharmaceutical companies, the U.S. market is a critical source of revenue. In 2024, Indian drug manufacturers exported medicines worth ₹31,626 crore to the United States, and in the first half of 2025 alone, exports reached ₹32,505 crore. Analysts warn that Trump’s new tariff measures could jeopardize India’s access to this lucrative market, placing considerable pressure on domestic pharmaceutical firms and potentially reshaping global trade dynamics in the sector.
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