The White House has announced a new trade measure placing tariffs on imported patented pharmaceutical products and their ingredients. The policy, introduced by President Donald Trump, is aimed at strengthening domestic manufacturing and securing pharmaceutical supply chains in the United States.
Under the announcement, patented drugs will face a 100 per cent tariff, but the implementation will not be immediate. The tariffs will come into effect after 120 days for large companies and 180 days for smaller companies, meaning the global market including India will not see any major short-term disruption.
The policy also provides reduced tariff rates for certain partner countries. Imports from the European Union, Japan, South Korea, Switzerland, and Liechtenstein will face around 15 per cent tariffs, while the United Kingdom will receive a comparatively lower rate under a separate agreement. At the same time, generic medicines and biosimilars have been kept outside the tariff framework for now, though this may be reviewed later.
• 100 per cent tariff on patented pharmaceutical imports
• Effective after 120–180 days, so no immediate major impact
• 15 per cent tariff for EU, Japan, South Korea, Switzerland, Liechtenstein
• Lower tariff for the United Kingdom
• Generics and biosimilars currently exempt
• Incentives for companies shifting manufacturing to the US
Sun Pharmaceutical Industries
• Largest pharma company in India and a leading global generic player
• Strong presence in generics, specialty drugs, APIs, and OTC products
• Wide range of dosage forms (tablets, injectables, creams etc.)
• Major revenue from India and the US markets
Cipla
• Established global pharma company with 1,500+ products
• Focus on APIs, respiratory medicines, and global access programmes
• Strong presence in India, Africa, and North America
Known for affordable and essential medicines
Lupin Limited
• Among the top global generic drug companies
• Operates in formulations, APIs, biotechnology, and drug delivery systems
• Significant international footprint, especially in the US
• Consistent revenue growth in recent years
Current Situation (Short Term)
• Minimal immediate impact due to delayed implementation
• India’s exports remain stable as generics are exempt
Outlook
• India may benefit if demand shifts towards lower-cost generic drugs
• Risk remains if the US later includes generics under tariffs
• Indian firms may face pressure to expand manufacturing in the US