Indian Pharma Exporters Unlikely to Face Immediate Impact from 100% U.S. Tariff on Branded Drugs

Most Indian pharmaceutical exporters are not expected to face an immediate impact from U.S. President Donald Trump’s announcement of a 100% tariff on imports of branded and patented medicines, though the industry is awaiting clarity on the policy. Most large Indian drugmakers already have manufacturing facilities in the United States.

Dr. Rajesh Gupta, president of the Himachal Drug Manufacturers Association, said:
“Since Himachal Pradesh’s pharmaceutical industry primarily produces generic medicines, this announcement will not affect us. However, we are waiting for the official notification with detailed guidelines.”

The new tariff on imported drugs is set to take effect October 1 and is reportedly aimed at protecting U.S. companies from what Washington calls “unfair external competition.” Around 665 pharmaceutical firms in Himachal Pradesh are awaiting the details with interest.

Gupta noted that leading Indian companies such as Dr. Reddy’s Laboratories, Mankind, Sun Pharma, Alkem, and Macleods, which export branded drugs to the U.S., already operate manufacturing units there. “This decision will not impact them,” he said.

Out of Himachal’s 665 units, 255 are WHO-GMP certified, with many also holding EU-GMP and U.S. FDA certifications.

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) echoed this view. Its chairman, Namit Joshi, said:
“A large part of our exports consists of generics. Most big Indian companies already run manufacturing or repackaging facilities in the U.S. and are exploring further acquisitions. While the ongoing investigation in the U.S. is examining the national security implications of drug imports, it is prudent to prepare for possible future policy shifts and build strategies to mitigate risks. India remains a leading global supplier of affordable, high-quality medicines.”

According to Pharmexcil, India supplies nearly 47% of U.S. pharmaceutical needs—particularly generics—ensuring immediate access to affordable and essential medicines, from life-saving oncology and antibiotics to treatments for chronic diseases.