U.S. President Donald Trump has announced that, starting October 1, the import tax on all branded and patented pharmaceutical products will be raised to 100 percent.
According to a statement released by the Trump administration, the new tariff will apply to pharmaceutical companies that do not already have a production plant in the United States or have not yet begun construction of one.
The administration noted that this move is part of Trump’s new trade policy aimed at protecting domestic industries, strengthening local production, and reducing reliance on foreign goods.
Meanwhile, Indian media reports claimed that since the U.S. is a major buyer of Indian medicines, and most of India’s exports consist of generic drugs, these products may not fall under the new tax. As a result, the immediate impact could be limited. However, if the tariffs are applied directly to patented and branded medicines, it could put significant pressure on India’s pharmaceutical industry.
Following the announcement, the Indian stock market reacted negatively, with shares of major pharmaceutical companies experiencing a notable decline.
