India’s MEA says it is “closely monitoring” President Trump’s sweeping 100% tariff on branded pharmaceuticals, a move set to jolt global trade and rattle exporters.
New Delhi / Washington, Sept. 26, 2025 — The Ministry of External Affairs (MEA) announced Friday that it is carefully tracking the United States’ decision to impose a 100% tariff on imports of branded and patented pharmaceutical drugs starting October 1, 2025.
MEA spokesperson Randhir Jaiswal confirmed that the government is examining both the economic impact on Indian exporters and the possible diplomatic implications of the measure.
“We saw a notice yesterday on social media that talked about new tariffs. We’ve seen the report on pharma and other products, and the relevant ministry and department are closely monitoring the matter and examining its impact,” Jaiswal said.
Trump’s Pharma Gamble
US President Donald Trump announced Thursday on Truth Social that the tariffs will apply across the board to imported branded and patented medicines unless the company is already constructing a manufacturing facility in America.
“Starting October 1, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump declared. “‘IS BUILDING’ will be defined as ‘breaking ground’ and/or ‘under construction.’”
The move is consistent with Trump’s “America First” reshoring policy, designed to force foreign pharmaceutical giants to relocate production to the United States.
How Exposed Is India?
According to the Observatory of Economic Complexity (OEC), the United States imported $86.4 billion in packaged medicines in 2023, with India supplying $9.2 billion (10.6%) of the total. While this headline figure highlights India’s stake in the global pharma chain, analysts say the direct impact may be limited.
- India is the largest supplier of generics to the US, accounting for $3.7 billion in exports in the first half of 2025 alone.
- Crucially, generics, OTC drugs, biologics, and specialty drugs are excluded from the tariff since they fall under Section 232 protections.
Market analysts told Mint that the real risk for India lies in sentiment and uncertainty, with global investors jittery about how tariffs might spill over into other categories or trigger retaliatory trade actions.
The Bigger Picture
The tariff war comes at a sensitive time for global diplomacy. Western nations are simultaneously tightening sanctions on Iran’s nuclear program while Trump presses America’s allies to increase defense spending and curb trade with adversaries.
India, which has deep pharma trade ties with the US but also a tradition of maintaining balanced global relations, finds itself once again in a careful balancing act—protecting its exporters while avoiding confrontation with Washington.
For now, New Delhi’s message is clear: India is watching, waiting, and preparing—but the shockwaves from Washington are already reverberating through global markets.
