Trump announces 100% tariff on patented, branded drugs

• US President Donald Trump announced tariff of 100 per cent on branded and patented pharmaceutical drugs.

• Trump said that the pharmaceutical tariff would not apply to companies that are building manufacturing plants in the US.

• He also announced 50 per cent tariffs on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture and 25 per cent on heavy trucks starting on October 1.

• The measures mark Trump’s toughest trade action since April’s sweeping reciprocal duties on nearly all US trading partners.

World’s largest pharmaceutical market

• The US is the world’s largest pharmaceutical market.

• In 2024, America imported nearly $233 billion in pharmaceutical and medicinal products, according to the Census Bureau.

• Trump’s move aimed at boosting domestic production will come as a huge shock to India, the leading pharma exporter to the US. 

• India is the major supplier of generic medicines to the US market, exporting $8.7 billion (Rs 76,113 crore) worth of pharma products to the US. This is 40-47 per cent of all the generic drugs used in the US.

• Indian drugs are also instrumental in ensuring access to vital medicines to Americans at affordable prices. 

• However, due to its low costs, the profit for Indian drug companies from the US is razor-thin. But, Indian firms derive up to 50 per cent of total revenue from American buyers.

• For Indian drug giants Sun Pharma, Dr Reddy’s, Lupin, and Aurobindo, Trump’s announcement is a huge setback as they have come to rely on US demand for affordable medicines.