Washington: U.S. President Donald Trump has announced that starting October 1, a 100% import tariff will be imposed on all branded and patented pharmaceutical products.
According to a statement released by the Trump administration, the new tariff will apply to pharmaceutical companies that do not already have a manufacturing plant in the U.S. or have not begun construction on one.
This move is part of Trump’s new trade policy aimed at protecting and strengthening domestic industries by discouraging the use of foreign goods.
Meanwhile, Indian media reports suggest that while the U.S. is a major importer of Indian pharmaceuticals, the bulk of India’s exports consist of generic drugs. These are likely to be exempt from the new tariffs, potentially limiting the overall impact on India’s pharma sector.
However, if the tariff is strictly applied to patented and branded drugs, it could put pressure on Indian companies involved in those segments.
The announcement had an immediate negative impact on the Indian stock market, with shares of several Indian pharmaceutical companies falling sharply following the news.