WASHINGTON– The Donald Trump administration reportedly does not intend to impose tariffs on imports of generic drugs, a move that would bring major relief to India and other key exporters of low-cost medicines to the United States, according to a report by The Wall Street Journal.
The decision follows months of internal debate over whether to levy taxes on a wide range of pharmaceuticals under Section 232 of the Trade Expansion Act of 1962, which allows tariffs on imports deemed a threat to national security.
Last month, President Trump announced a 100 percent tariff on branded pharmaceutical drugs, effective October 1, but excluded generics from the measure. Officials told the Journal that delaying tariffs on generic medications would give the administration more time to negotiate with pharmaceutical companies.
Industry analysts said the new tariffs targeting branded and patented drugs are unlikely to significantly affect Indian manufacturers, as most of India’s exports to the U.S. consist of generic, off-patent medicines. These generics are not expected to fall within the scope of the tariff plan, which is aimed primarily at multinational pharmaceutical firms such as Pfizer and Novo Nordisk.
“The imposition of a 100 percent tariff by the U.S. on imports of branded and patented pharmaceutical products starting October 1, 2025, may not significantly hurt Indian drug makers,” said Anuj Sethi, Senior Director at Crisil Ratings.
India supplies about 40 percent of the generic medications sold in the U.S., providing affordable alternatives for conditions ranging from diabetes to cancer. Each year, Indian pharmaceutical companies export roughly $20 billion worth of generics to the U.S., led by firms including Sun Pharma, Dr. Reddy’s Laboratories, Cipla, Lupin, and Aurobindo Pharma.
Roughly one-third of India’s total pharmaceutical exports go to the U.S. market, underscoring the importance of the administration’s decision to keep generic drugs exempt from its tariff plan. (Source: IANS)
