Trump’s order only for patented, branded medicines supplied to the U.S., not generic medicines: Indian Pharmaceutical Alliance

U.S. president Donald Trump’s executive order to impose a 100% duty on pharmaceutical imports only applies to patent or branded medicines that are exported to the U.S., and not to generic drugs, Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance, said on Friday.

“The executive order refers to patented/branded products supplied to the U.S. It does not apply to generic medicines,” Jain said in a statement.

Trump had announced the fresh set of tariffs in a post on Truth Social, his social media platform, late on Thursday. “Starting October 1, 2025, we will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company IS BUILDING their pharmaceutical manufacturing plant in America. “IS BUILDING” will be defined as “breaking ground” and/or “under construction.” There will, therefore, be no tariff on these pharmaceutical products if construction has started,” Trump wrote.

He claimed the move would encourage companies to establish manufacturing plants in the U.S., as those with facilities already under construction will be exempt from the new tariffs. He has argued that the tariffs will boost domestic investment and reduce the budget deficit.

These announcements followed the release of U.S. economic and employment data on Thursday, which showed the U.S. economy grew by 3.8% during the April-June period.

The decision comes as a blow to India’s pharmaceutical sector, which had been hoping to remain largely unaffected by the previously introduced U.S. tariffs imposed on countries, including India. The U.S. is the largest export market for Indian pharmaceuticals. India supplies over 45% of generics and 15% of biosimilars used in the American market.

Before the imposition of the latest tariffs by president Trump, ratings agency ICRA said that Indian pharmaceutical companies continue to remain resilient amid global uncertainties and tariff threats from its largest export market, the U.S., but with regulatory risks, tariff uncertainties, and evolving market conditions, the sector’s ability to sustain growth will be tested in the quarters ahead.

The revenues for ICRA’s sample set of pharmaceutical companies are projected to expand by 7-9% in FY26, supported by 8-10% growth in the domestic market and 10-12% growth in Europe, the agency said in its latest review. However, the performance in the U.S. market is expected to moderate, with year-on-year growth slowing to 3-5%, from nearly 10% in FY25, it said.