Daijiworld Media Network – Washington

Washington, Sep 26: US President Donald Trump has triggered global market jitters by announcing a 100% tariff on imported branded and patented pharmaceutical drugs, effective October 1, 2025.

In a post on Truth Social, Trump stated, “Starting October 1st, 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.”

The move is expected to significantly impact Indian pharmaceutical companies. Analysts at Emkay Global estimate a $10 billion effect, while brokerages have flagged potential repercussions for Sun Pharma, Biocon, and Wockhardt.

The tariffs are designed to boost domestic manufacturing and give the US tighter control over its supply chain. However, in the short term, the measure could lead to higher drug costs for Americans, particularly in oncology, immunology, and specialty therapies where no generics exist.

Though generics appear spared, their active pharmaceutical ingredients (APIs) could fall under the tariff ambit. Currently, only 12% of branded APIs are produced domestically, while 43% come from the European Union. The US already imposes 15% tariffs on most imported goods, including pharmaceuticals.

Experts caution that onshoring production may be difficult due to the highly global nature of pharma supply chains, risking supply disruptions without immediate benefits. Ultimately, American consumers could face rising out-of-pocket costs, higher insurance premiums, and potential delays in accessing essential medicines, raising concerns about the policy’s near-term effectiveness.