The BRICS Times
Donald Trump declared a steep 100% tariff on imported drugs, but firms with plants under construction in the US are exempt.
US President Donald Trump on Thursday revealed that imported pharmaceutical drugs will face 100 per cent tariffs starting October 1. He clarified that the measure will not impact companies already investing in drug manufacturing facilities within the United States, provided those plants are either “breaking ground” or “under construction.”
“From October 1, 2025, a 100% Tariff will be applied on branded or patented Pharmaceutical Products, unless a Company IS BUILDING its Manufacturing Plant in America. ‘IS BUILDING’ means either ‘breaking ground’ or ‘under construction.’ If construction has started, no tariff will apply. Thank you for your attention to this matter,” Mr Trump wrote on Truth Social.
No additional explanations were included in his post, and the White House has not issued detailed guidelines yet.
According to trade data, the US imported nearly $233 billion worth of pharmaceutical and medicinal items in 2024. Reports suggest that around 90 per cent of American biotech companies depend on imported components for at least half of their licensed medicines.
Back in April, the Trump administration opened an investigation into the security risks linked with importing both finished medicines and raw drug ingredients. Earlier in July, Mr Trump indicated he would give pharmaceutical firms time to relocate their operations before enforcing tariffs as high as 200 per cent. On July 15, he suggested tariffs could roll out by the month’s end. Just weeks later, Washington and Brussels reached a trade deal that introduced a 15 per cent tariff on drug imports from the EU.
Impact On Indian Pharmaceutical Exports
The United States is India’s top buyer of medicines, making up more than one-third of its total pharmaceutical exports. These exports are mostly affordable generic versions of widely prescribed drugs.
Leading Indian firms such as Dr Reddy’s Laboratories, Lupin, Zydus Lifesciences, Aurobindo Pharma, Sun Pharma and Hetero Labs are major suppliers to the American market. In 2024, these companies exported $3.6 billion worth of goods to the US, with shipments reaching $3.7 billion in just the first six months of 2025.
While the new US tariffs are focused on branded and patented drugs largely produced by global giants like Pfizer and Novo Nordisk, there is still uncertainty over whether India’s complex generics or specialty medicines might also face restrictions.
Trump’s Trade Tariffs On India
Last month, Donald Trump introduced a 25 per cent reciprocal tariff on Indian goods, followed by an extra 25 per cent penalty due to New Delhi’s oil trade with Russia.
Since his return to the White House in January, Trump has repeatedly criticized India for buying Russian oil, alleging that such purchases are financing Moscow’s aggression in Ukraine.
India strongly pushed back, calling the American tariffs “unfair, unjustified and unreasonable.”
