Europe Hit Hard by US Pharma Tariffs, India Safe
From October 1, 2025, the U.S. will impose 100% tariffs on imported branded or patented pharmaceutical products, unless the manufacturers are already building or expanding U.S. facilities.
Who Is Most Exposed
European pharmaceutical exporters are expected to be the worst affected, especially those exporting high-value branded drugs. India, by contrast, may be less impacted initially, because much of its exports to the U.S. are generic or off-patent medicines rather than patented ones.
India’s Export Profile
India exported around USD 9.8 billion worth of pharmaceutical formulations to the U.S. in 2025, mostly generics, which are less vulnerable under the new tariff regime. Still, some Indian companies that market branded or specialized drugs in the U.S. could face risks, depending on how the new rules are defined.
Global Response & Mitigation
Some global pharmaceutical firms have already pledged over USD 350 billion in U.S. manufacturing and supply chain investments to cushion the blow from tariffs. The European Union and Japan believe their trade deals with the U.S. may limit tariffs to about 15% for their pharmaceutical exports, providing partial relief.
Outlook & Risks
The policy adds uncertainty to global pharmaceutical trade. Analysts warn it could raise prices, disrupt supply chains, and challenge smaller firms that lack U.S. presence. For India, the key will be how branded generics are classified and whether tariff rules expand beyond strict patents.
