MEA Reacts to US Imposing 100% Tariff on Indian Pharma Imports; Implications Being Studied
New Delhi, September 27, 2025 – The Ministry of External Affairs (MEA) on Friday responded to the announcement by US President Donald Trump to impose a 100 percent tariff on branded and patented pharmaceutical products imported from India, stating that the implications of Washington’s decision are being closely examined.
MEA spokesperson Randhir Jaiswal addressed the issue during his weekly press briefing, noting that the relevant departments and ministries are actively monitoring the situation and assessing the potential impact of the tariff on India’s pharmaceutical sector.
“We saw a notice yesterday on social media regarding new tariffs. We have also reviewed reports related to pharma and other products. The concerned ministry and department are closely examining the matter to evaluate its implications,” Jaiswal said.
Details of the US Tariff Announcement
President Trump, in a post on Truth Social on Thursday (US local time), announced that effective October 1, 2025, the United States would impose a 100% tariff on any branded or patented pharmaceutical product imported from foreign countries, including India.
However, the US administration introduced an exception: companies that are constructing new pharmaceutical manufacturing facilities in the United States will be exempt from the tariff.
According to Trump, “’I S BUILDING’ will be defined as ‘breaking ground’ and/or ‘under construction.’ There will, therefore, be no tariff on these pharmaceutical products if construction has already begun.”
Impact on the Indian Pharma Industry
The new directive is expected to primarily affect branded and patented medicines exported to the US, which constitutes a significant market for Indian pharmaceutical companies. However, experts have clarified that generic medicines will not be impacted by this tariff.
Sudarshan Jain, Secretary-General of the Indian Pharmaceutical Alliance (IPA), emphasized that “the executive order refers specifically to patented or branded products supplied to the United States. Generic medicines are not included under this directive, so they will not be subjected to the new tariff.”
India’s pharmaceutical sector, which is a major global supplier of both generic and patented medicines, is likely to face strategic challenges in the wake of the US policy.
Companies exporting branded and patented medicines may need to reassess their supply chains and investment strategies, potentially exploring the option of building production facilities in the United States to avoid the tariff.
Aggressive Analysis: Stakes for India
While the MEA maintains a cautious approach, industry insiders warn that this move could escalate into a larger trade dispute between the world’s two largest democracies.
India has long been a dominant player in affordable medicines and global healthcare supply chains, and a 100% tariff could significantly impact revenues, investment flows, and international collaborations.
Policy analysts also point out that the US exception for companies investing in domestic facilities appears designed to coerce Indian pharma firms into relocating production, which could undermine India’s competitive advantage in manufacturing and exports.
The MEA and other ministries are now evaluating both diplomatic and trade-level responses, emphasizing that India’s interests and the security of its pharmaceutical industry will be protected.
The government is expected to explore legal, diplomatic, and economic measures to counterbalance the tariff and ensure that Indian exporters are not unfairly disadvantaged.
MEA’s Stance
The Indian government has assured that it is carefully examining the new US tariff order and evaluating all possible diplomatic, trade, and industry-level responses. The MEA’s proactive monitoring aims to protect Indian interests and ensure minimal disruption to trade while engaging with US authorities on this matter.
The announcement underscores the increasing complexities in global trade policies affecting critical sectors like pharmaceuticals, which have both economic and public health implications.
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