US plan to impose a 100% tariff on imported generic medicines from 2028 raises concerns for Indian drugmakers, but the industry says it has time to adapt.
Highlights
- US President Donald Trump has proposed a 100% tariff on imported generic medicines starting in 2028.
- India is the largest supplier of generic medicines to the US, with exports worth nearly $9.7 billion annually.
- The delayed implementation gives Indian pharmaceutical companies time to diversify markets and strengthen manufacturing.
- Industry experts expect companies to explore local manufacturing and strategic partnerships in the US.
- The US remains India’s biggest pharma export market, accounting for around 38% of total pharmaceutical exports.
- While the proposal may impact margins, analysts do not expect an immediate disruption to exports.
Story
India’s pharmaceutical industry is closely monitoring the US administration’s proposal to impose a 100% tariff on imported generic medicines from 2028. The move, announced by US President Donald Trump, could significantly affect global pharmaceutical trade, especially for Indian drugmakers that have a strong presence in the American market.
India is currently the world’s leading supplier of affordable generic medicines to the United States. The country exports generic drugs worth nearly $9.7 billion to the US every year, making America the largest destination for Indian pharmaceutical exports.
Despite the proposed tariff, industry executives believe there is enough time to prepare. Since the measure is expected to take effect only from 2028, companies can gradually adjust their strategies by expanding manufacturing in the US, increasing exports to other countries, and strengthening supply chains.
Many Indian pharmaceutical companies already have manufacturing facilities, research centres and distribution networks in the US, which could help reduce the impact of higher import duties. Firms are also expected to focus on high-value specialty medicines and diversify into emerging markets.
For consumers, any increase in tariffs could eventually lead to higher medicine prices in the US if import costs rise. However, healthcare experts note that Indian generic medicines have played a crucial role in making treatment affordable for millions of Americans, making a sharp disruption less likely.
Although uncertainty remains over the final policy, India’s pharmaceutical sector is expected to use the transition period to adapt, ensuring that its global competitiveness and export growth remain intact.
