India closely monitoring impact of Trump’s 100% tariff on branded pharma imports: MEA

Ministry of External Affairs (MEA) Official Spokesperson Randhir Jaiswal, reacting to US President Donald Trump’s imposition of 100% tariffs on imports of branded and patented pharmaceutical drugs from October 1, 2025, said the government is monitoring the situation closely.

On Thursday, the Trump administration announced that starting October 1, 2025, it will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America.

Experts say Trump’s decision is unlikely to have a significant impact on the Indian pharmaceutical industry in the near term. Still, the move triggers a warning signal to remain prepared for future policy shifts and to build risk-mitigation strategies, they warn.

“We saw a notice yesterday on social media that talked about new tariffs. We've seen the report on pharma and other products, and the relevant ministry and department are closely monitoring the matter and examining its impact,” Jaiswal said.

India is the largest pharmaceutical trade partner for the U.S., supplying nearly 47% of the U.S. public’s pharmaceutical requirements in terms of volume. The U.S. is the largest pharmaceutical market in the world, and India is one of the largest exporters of generic drugs; approximately 35% of India’s pharmaceutical exports were to the U.S. market in FY25.

On trade talks with the US, Jaiswal said Union External Affairs Minister S Jaishankar had a meeting with Secretary of State Mark Rubio in New York on September 22, which focused on trade and tariffs. “Other aspects of the bilateral relationship were also discussed. About H1B, the Ministry and our embassy in Washington, DC, have been in active touch with the US administration…”

He said clarifications and FAQs were issued by the US side after that on how it's going to play out. Overall, Jaiswal said this is still an evolving situation and both governments are engaged at various levels.

Despite speculations that India and the U.S. might finalise a long-awaited trade agreement during Commerce Minister Piyush Goyal’s visit to Washington after a series of positive talks, nothing concrete has emerged so far, apart from both countries' willingness to continue the ongoing discussions on the much-hyped Free Trade Agreement (FTA). The commerce ministry, in its latest statement, has said the recent visit of an Indian delegation, led by Goyal, to the U.S. from September 22-24 witnessed constructive meetings with the Trump government on various aspects of the trade deal.

India, meanwhile, has also dismissed comments made by NATO Secretary-General Mark Rutte on a purported conversation between Prime Minister Narendra Modi and Russian President Vladimir Putin, saying these comments are “factually incorrect and entirely baseless.”

Rutte in a recent TV interaction during the UN General Assembly in New York, had said the US tariffs on India had a major impact on Russia, which he said prompted India to reach out to Putin to explain its position on Ukraine.   

Jaiswal also talked about the SICA foreign ministers' meeting, which was held on 25th September. “SICA and India are working together to advance collaboration in areas like digital transformation, renewable energy, food security, health security, and climate action,” said Jaiswal.