US President Donald Trump has announced significant import duties on foreign pharmaceuticals, kitchen cabinets, furniture, and heavy trucks. This new tariff regime will take effect on October 1.
According to President Trump, this decision is aimed at protecting American industries and preserving national interests. Specifically, a 25 percent duty will be imposed on foreign-made heavy trucks.
Most significant is the proposed 100 percent tariff on pharmaceutical products, although exemptions would be provided to companies setting up production facilities in the US. This move is intended to strengthen the US pharmaceutical industry and reduce dependence on foreign supplies.
India, known as the “pharmacy of the world,” contributes 20 percent of the global supply of generic drugs and 60 percent of vaccines. India has the largest number of FDA-approved plants outside the United States.
India exported pharmaceutical products worth ₹1.87 lakh crore ($21.7 billion) in the 2024-25 fiscal year, with the US being the most prominent destination. The US is India’s largest pharmaceutical market, accounting for 31 percent of Indian pharma exports.
According to the Pharmaceutical Export Promotion Council of India, India exported $3.6 billion worth of medicines to the US in 2024, and $3.7 billion worth of pharmaceutical products in the first half of 2025. This policy change is likely to have a significant impact on the Indian pharma industry.