Industry Odisha Bureau, Jul 26: Since India is reportedly the world’s largest generic drug supplier and the United States of America (USA) being reportedly the top purchaser of such medicines, Donald Trump-led US regime has reportedly announced a phased tariff plan on imported Indian generic medicines.
As per media reports, “The Trump-regime’s phased tariff plan for imported Indian generic medicines include: ‘zero duty for two years from Aug 2026’, then ‘100% from August 2028’, and ‘200% thereafter’.”
Media reports stated that, “Such a move by the Trump-regime is to encourage US-based pharmaceutical manufacturing and reduce reliance on imports.”
Detailing on the latest US policy, media reports added that, “The Zero Tariffs on imported Indian generic medicines will be implemented with effect from August 1, 2026 to August 31, 2028, while the 100% tariff plan will be implemented with effect from August 2029 for one year, and the 200% tariff will be implemented with effect from August 2030 onwards.”
Reportedly, “India exported $9.7 billion in pharma products to the US in 2025, i.e. 38% of its total pharma exports, while major Indian pharmaceuticals, like Sun Pharma, Dr Reddy’s, Cipla, Lupin, Aurobindo, Zydus, et al, derive 35–50% of revenue from the US market.”
Media reports, quoting experts, have stated that, “The 100% US tariff could make many Indian generic drugs’ exports unviable, while the 200% tariff would severely erode margins. Industry experts even warn that shifting generic production to the USA is complex and time-consuming.”
