Trump Imposes 100 Percent Tariffs on Generic Drugs, Raising Stakes for Indian Exports
President Trump announces 100% tariff on generic drug imports starting 2028, with a phased increase to 200% in 2029, targeting imports primarily from India and other low‑cost producers to protect domestic manufacturers.
Indian pharmaceutical industry warns the tariffs will make U.S. market absorption impossible, could cut export revenues and cause the sector to miss its 2030 sales target, as highlighted by the Pharmexcil trade body.
Trade experts label the move "completely out of scope," arguing it disrupts global supply chains and may prompt India to seek alternative markets while the U.S. negotiates a broader trade deal with India within 3‑4 months.
Pharmexcil and other Indian exporters anticipate shipping and cost challenges, noting that even with a two‑year delay, the steep duties could erode price competitiveness of Indian generics in the U.S. market.
