Trump 100% Tariffs on Branded Pharma Drgus: US President Donald Trump is taking one after the other, which is causing a stir worldwide. Now he has announced to put 100 percent tariff on all types of branded and patented medicines. This tariff will remain in force until the drug -making companies set up manufacturing units within the US.

This move of President Trump has come at a time when intense investigation has been done under Section 232 of the Trade Expensing Act 1962 in the US. This section gives the President the right to increase the tariff by making the subject of national security.

Legal challenge

This announcement of tariffs under section 232 has been made when the right of President Trump over the Tariff is being heard in the US Supreme Court under the International Emergency Economic Powers Act. If there is a decision against Trump from there, then America may have to withdraw recipes on all countries.

How much impact on India’s pharma?

America is the largest market for Indian drug exports. It is about one-third of India’s total drug exports. Here India mainly exports cheap generic drugs, which cost much lower than branded drugs. During the financial year 2025, India exported medicines worth about $ 10.5 billion to the US.

In such a situation, when Trump has applied 100 percent tariff only on branded and patent medicines, its effect on Indian generic medicines is likely to be limited. However, market experts say that this step may have a negative impact on investors’s trust and market notion.

Which big companies are affected?

Zydus Life: 49% of the total income comes from America.

Dr. Reddy’s: About 47% income is from the US.

Aurobindo Pharma: More than 44% income comes from the US.

Experts believe that investors and companies will now look at whether generic drugs will also be brought under tariffs in future. If this happens, India’s pharmaceutical export market may suffer a direct shock.

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