Trump to Levy Up to 100% Tariffs on Pharma Imports from October 1, Impacting Indian Firms
Los Angeles/Sep 26, 2025
NRIpress.club/Ramesh/ A.Gary Singh
President Donald Trump has announced that starting October 1, branded and patented pharmaceutical products imported into the United States will face tariffs of up to 100%, unless the drugmakers are actively building manufacturing plants in America.
The president has long threatened tariffs on drug imports, which were exempted during his first term. He argues that the move will pressure pharmaceutical companies to expand U.S. manufacturing, strengthen domestic supply chains, and, in his view, help bring down drug prices. Experts, however, caution that higher tariffs are unlikely to reduce costs for consumers.
Major drugmakers appear to be taking the warning seriously. Companies including Eli Lilly have announced multibillion-dollar investments in new U.S. facilities. Just this week, Lilly confirmed a $6.5 billion plant in Houston, following its earlier commitment to a $5 billion facility in Virginia. Still, construction timelines mean that some projects may not be operational for several years.
Trump clarified on Truth Social that “IS BUILDING” would mean projects that have already broken ground or are under construction. Companies that meet this condition will avoid the new tariffs.
Industry analysts note that most large pharmaceutical firms already have some U.S. production capacity and ongoing expansion plans, which could limit the immediate impact of the levies. Smaller manufacturers, however, may face greater exposure.
The Pharmaceutical Research and Manufacturers of America (PhRMA) expressed concern, warning that imposing tariffs could divert funds away from new manufacturing and research. “Every dollar spent on tariffs is a dollar that cannot be invested in American production or in developing future treatments and cures,” said Alex Schriver, PhRMA’s senior vice president.
Experts also point out that the pharmaceutical industry remains highly globalized, with ingredients and finished drugs sourced from multiple countries. While Trump’s tariffs target brand-name products, generic imports remain exempt—a crucial factor, since generics account for much of America’s drug supply.
For India, the world’s leading supplier of generic medicines and responsible for nearly 47% of U.S. pharmaceutical needs, the immediate impact is limited. Most Indian firms focus on low-cost generics rather than patented drugs and many already operate U.S.-based manufacturing or packaging units. According to Namit Joshi, chairman of India’s Pharmaceutical Export Promotion Council, the new tariffs are “unlikely to have an immediate effect on Indian exports.”
The administration has yet to release findings from its broader investigation into the national security risks of pharmaceutical imports, which could set the stage for wider tariffs in the future. Trump has previously hinted that tariffs on drug imports could eventually rise as high as 250%, phased in over time.
The announcement on pharmaceutical tariffs came alongside a wave of new trade measures: a 50% tariff on kitchen cabinets and bathroom vanities, a 30% tariff on upholstered furniture, and a 25% tariff on heavy trucks manufactured outside the U.S.
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