US President Donald Trump Announces 100% Tariff On Patented Drugs; Will It Affect India?

Washington DC: The Trump administration will impose tariffs of up to 100% on certain imported drugs, although with several major exemptions, in a move to pressure pharmaceutical companies to manufacture more in the US. The new levy, which President Trump authorised on Thursday, applies to patented drugs made in countries that lack tariff agreements with Washington and by companies that do not have most-favoured-nation pricing agreements with the administration.

According to reports quoting a senior White House official, the objective of the orders is specifically to reduce US dependence on other countries for essential drugs.

The announcements come a year after Trump rolled out sweeping tariffs on multiple trading partners under what he termed “Liberation Day” on 2 April, a move that disrupted global supply chains and financial markets. Despite those measures being struck down by the Supreme Court earlier this year, the Trump administration has continued to pursue similar policies through alternative mechanisms.

Will It Affect India?

“100% tariff is on patented products. Any patented drug imports from India made by companies that do not get approved for a reshoring plan will be subject to a 100% tariff,” news agency ANI quoted the official.

However, medicines that fall under the generic category are currently exempt.

Reportedly, large pharmaceutical companies have 120 days to present “reshoring plans”, while smaller firms have 180 days before the tariff comes into effect.

Exempted Countries

Some countries have been granted exemptions and reduced rates. These include the European Union, Japan, South Korea and Switzerland, which will face a 15% tariff under prior agreements, while Britain has secured tariff-free access for its medicines for three years as part of a broader deal, according to the US Trade Representative’s office.

Besides the pharmaceutical measures, Trump also signed a proclamation reshaping tariffs on steel, aluminium and copper, citing national security concerns and the need to strengthen domestic industry.