US, Sep.26,2025:Trump 100% Tariff on Branded Drugs has sparked a storm across the pharmaceutical world. On Thursday, former U.S. President Donald Trump announced a sweeping new trade measure: a 100% tariff on all branded and patented pharmaceutical imports, effective October 1, 2025–
This move, shared on his platform Truth Social, will drastically reshape global pharmaceutical trade. For India—one of the largest exporters of medicines to the United States—the decision comes as a fresh blow after existing 50% tariffs already dented export margins.
Alongside medicines, Trump also slapped 25% tariffs on heavy-duty trucks, 50% tariffs on kitchen and bathroom cabinets, and 30% tariffs on upholstered furniture.
Details of the New 100% Tariff Policy
Trump declared that beginning October 2025.
- 100% tariff will apply to all branded and patented pharmaceutical products not made in the U.S.
- 50% tariff will apply to all imported kitchen cabinets, bathroom vanities, and related furniture.
- 25% tariff will target heavy-duty trucks.
- 30% tariff will hit upholstered furniture.
He justified these tariffs as necessary to protect American manufacturers from “unfair foreign competition” and to safeguard national security interests.
Why Trump is Targeting Branded Drugs
At the core of Trump’s 100% Tariff on Branded Drugs lies his long-standing trade policy—”America First.” Trump has repeatedly accused countries like Ireland of offering low corporate tax rates to lure U.S. pharmaceutical giants such as Pfizer, Merck, and Johnson & Johnson.
By imposing heavy tariffs, Trump aims to force drug makers to shift production back to the U.S. instead of outsourcing to Ireland, India, or other low-cost countries.
Impact on Indian Pharmaceutical Exports
India exports around $12.7 billion worth of medicines annually to the U.S., according to the Global Trade Research Initiative (GTRI). While most are generic drugs, India also supplies branded formulations through leading firms like.
- Dr. Reddy’s Laboratories
- Lupin Limited
- Sun Pharma
These companies already operate at thin profit margins. With tariffs doubling to 100%, many may find it unsustainable to continue branded drug exports.
North America contributes nearly one-third of Indian pharma companies’ profits, meaning any disruption could shake their financial stability.
Indian Generic vs Branded Drug Market in the US
- Generics dominate: Nearly 90% of U.S. prescriptions are filled with generic drugs, and half of them originate from India.
- Branded drugs matter less for India, but tariffs still hurt because they raise overall compliance costs.
- According to IQVIA, Indian generics saved the U.S. $219 billion in 2022 alone.
Experts warn that if tariffs extend to generics in the future, U.S. healthcare costs could skyrocket and shortages could worsen.
The Ireland Factor in Branded Drugs Tariffs
The biggest hidden target of the Trump 100% Tariff on Branded Drugs may be Ireland.
- Ireland hosts factories of over a dozen top pharma companies, including Merck, AbbVie, and Eli Lilly.
- Products like Keytruda (Merck’s cancer drug) and Botox (AbbVie) are manufactured there for U.S. consumers.
- Trump has accused Ireland of running a “tax haven scam” at America’s expense.
This makes Ireland’s pharmaceutical exports a likely primary casualty of the tariff war.
Consequences for US Healthcare Costs
If tariffs are enforced strictly.
- Drug costs will rise in the U.S. due to reduced competition.
- Patients may face shortages, especially for specialized treatments like cancer and obesity drugs.
- Insurance companies could increase premiums.
- Hospitals may cut back on treatments that rely on imported branded drugs.
Ironically, while Trump’s policy is meant to protect American manufacturers, it may hurt American patients the most.
Expert Reactions and Global Trade Concerns
- GTRI experts warn Indian pharma exporters may be “priced out” of the U.S. market.
- Reuters analysts note Trump’s tariffs risk violating WTO rules, sparking global trade disputes.
- U.S. Commerce Secretary Howard Lutnick has defended the move, calling Ireland’s policies a “scandal.”
Global reactions remain divided—some view this as protectionist overreach, while others see it as a wake-up call for diversifying supply chains.
Future of India–US Pharma Trade Relations
For India, the challenge is twofold.
- Safeguard generics – India must push through trade negotiations to keep generics exempt from tariff hikes.
- Diversify exports – Indian firms may need to explore markets in Europe, Africa, and Latin America to reduce dependency on the U.S.
Experts suggest that without a bilateral trade deal, Indian companies could lose competitiveness in the world’s largest pharma market.
A Global Ripple Effect
The Trump 100% Tariff on Branded Drugs is more than a trade policy—it’s a geopolitical signal. While it may protect U.S. truck and cabinet makers, the real storm is in pharmaceuticals.
For India, the short-term impact may be limited to branded drugs, but the long-term fear is clear: if generics are targeted, America’s healthcare system could face unprecedented costs and shortages.
