In a move that could reshape the global pharmaceutical landscape, US President Donald Trump has announced a massive 100% tariff on imported patented drugs. Citing national security risks and supply chain vulnerabilities under ‘Section 232’, the administration aims to force manufacturing back to US soil. For India, the news is a mixed bag: while patented medications face heavy levies, generic drugs—which constitute a major portion of Indian exports—have been granted a temporary exemption.

The long-term outlook, however, remains complex. Starting July 2026, these tariffs will be implemented in phases. According to White House officials, any company failing to submit a plan to shift production to the US will face the full brunt of the 100% duty. This could severely impact Indian firms involved in Active Pharmaceutical Ingredients (API) and contract manufacturing for multinationals. With nearly 53% of patented drugs sold in the US currently manufactured abroad, Trump’s “self-reliance” drive seeks to ensure that critical treatments for cancer and chronic diseases are no longer at the mercy of global supply disruptions.