Domestic Generic Producers May Gain as US Slaps 100% Tariffs on Branded Pharma

New Delhi – Indian generic drug manufacturers could see near-term benefits after the US announced 100 per cent tariffs on branded and patented pharmaceutical imports from October 1, 2025, analysts said on Friday.

Generic medicines remain exempt from the tariffs, which are expected to drive demand towards more affordable alternatives. “The latest tariff announcement is for branded or patented drugs, and not applicable to generics,” said Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA).

India supplies a large share of medicines to the US, with generics from Indian firms saving the American healthcare system $219 billion in 2022 and $1.3 trillion between 2013 and 2022, according to industry data.

Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, called the move a “significant shift in trade policy,” as pharmaceuticals had previously been exempt from such duties. He noted that while Indian companies manufacturing branded products abroad may face challenges, domestic generic producers are likely to benefit as US consumers turn to lower-cost options.

India currently supplies over 45 per cent of generics and 15 per cent of biosimilars used in the US, including life-saving oncology drugs, antibiotics, and chronic disease treatments.

President Donald Trump clarified that the tariffs would not apply to pharmaceutical products if a company is building a manufacturing plant in the US. “Starting October 1st, 2025, we will be imposing a 100 per cent tariff on branded and patented Pharmaceutical Product, unless a company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump posted on Truth Social.

With inputs from IANS