Trump has announced 100% tariffs on branded and pharmaceutical imports coming to the US, starting from October 1, 2025. India, being one of the key pharma exporters to the US, is set to face the heat of these massive tariffs.
In this blog, we’ll see the complete list of the US tariffs on pharmaceutical exports and other products. You will also get to understand how it can impact the Indian pharmaceutical companies and the US healthcare sector.
US Tariffs on Pharmaceutical Exports
From October 1, 2025, India’s pharmaceutical exports to the US will face a massive 100% tariff. Currently, this rate applies only to the branded and patented pharmaceutical products.
However, the companies that have or are in the process of setting up their manufacturing unit in the US will be exempted from these tariff rates.
Additionally, the US has also imposed tariffs on other goods such as furniture, heavy-duty trucks, and kitchen appliances.
Here is the complete list of tariffs announced by Trump across the sectors:
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India’s Pharma Exports to the US
India’s annual drug and pharma exports hit a record $30 billion in FY25, with a rise of 31% on a year-on-year basis. US alone accounted for $10.5 billion of these exports, a 20% jump from last year. This means that 34.5% of all Indian pharma exports go straight to America.
Beyond the US, India’s pharma exports to other countries rose nearly 7% YoY in August 2025. In the first half of 2025, India shipped $3.7 billion worth of medicines overseas.
Tariff Impact on the Indian Pharmaceutical Companies
Trump’s 100% tariff on branded and patented drugs is likely to hit India’s pharma exports. With US accounting for $10.5 billion, higher duties may impact competitiveness, reduce margins, and disrupt growth plans of companies like Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, and Cipla that depend heavily on the American market.
Here is the list of companies that are going to be affected by the 100% tariffs on pharmaceutical exports to the US:
1. Dr. Reddy’s Laboratories
Dr. Reddy’s Laboratories has the highest exposure to the US, with nearly 47% of its earnings coming from this market. US earnings are expected to reach around $1.5 billion in FY26, making the company especially vulnerable to tariff changes.
Only a small portion of revenues, such as from gSuboxone, which is manufactured in the US, is exempted from the tariff.
2. Sun Pharmaceutical Industries
Sun Pharmaceutical Industries depends on the US market for 37% of its earnings, putting about $2.1 billion to $2.3 billion at risk. A major portion of this comes from specialty brands, which make up over half of its US revenues, but only 10% of these products are made locally.
Its flagship drug Ilumya, manufactured outside the US, could be directly affected. However, since Ilumya is a chronic therapy, the company may be able to pass on higher costs to patients and retain volumes.
3. Cipla
Cipla looks relatively better protected, with 30% of its revenue coming from the US. Its Invagen facilities in the US generate 25% to 30% of its US earnings, providing some relief from tariffs.
The company is also expanding US manufacturing to reduce dependence on India-based plants, which could help it navigate tariff risks.
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4. Lupin
Lupin expects about $1.1 billion in US revenues in FY26. Its US manufacturing facilities contribute $70 million to $80 million, which is around 6 – 7% of its total earnings. While the US exposure is high, its local production footprint offers only limited protection.
5. Zydus Lifesciences
Zydus Lifesciences faces considerable risk, with $1.3 billion in projected US revenues for FY26 or FY27 and a lower US-based manufacturing footprint.
With such heavy reliance on exports, tariffs could significantly impact profitability if the company absorbs costs rather than passing them on to the customers.
6. Aurobindo Pharma
India’s leading generic drugs manufacturer, Aurobindo Pharma, generated around $1.6 billion in US sales in 2024. The company operates three facilities in the US, though their current output is relatively small.
There are plans to increase the oral dosage production to 12–15 billion units, which could eventually cover about one-third of US demand.
7. Gland Pharma
Gland Pharma appears to be better positioned than most generic manufacturers. US revenues are projected at $372 million – 393 million for FY26 or FY27, driven largely by injectables (a segment with fewer competitors).
With Chinese manufacturers likely to face steeper tariffs, this company could even get a competitive edge.
8. Alkem Laboratories
Alkem Laboratories is expected to earn $336–372 million from the US in FY26 or FY27. However, its heavy reliance on an India-based supply chain, smaller operational scale, and lack of vertical integration leave it vulnerable. If tariffs cannot be passed on to customers, profitability could be impacted.
9. Torrent Pharma
Torrent Pharma has only a limited US footprint, with projected revenues of $141–156 million in FY26 or FY27. Its smaller scale and absence of differentiated products are already impacting profitability, raising questions about the long-term viability of its US operations under higher tariffs.
India’s Protection from Generics Drugs Exemption
India is the largest supplier of generics drugs to the US, with $3.7 billion of exports in the first half of 2025. Generics make up about 90% of US drug volumes but only 10% of the value, highlighting their importance to the healthcare system.
Indian companies provide around half of these volumes, making the absence of tariffs on generics beneficial for the industry.
Potential Impact on the US Healthcare System
A sudden 100% tariff on Indian drugs could also hit the US healthcare system. India supplies over 45% of generics and 15% of biosimilars used in the US, helping save around $219 billion in 2022.
Tariffs may increase the prices of drugs, disrupt the supply chain, and lead to higher out-of-pocket costs. This can also disrupt the operations of hospitals, clinics, and pharmacies in the US. This might be the reason that the US has exempted generic drugs for now.
Conclusion
Trump’s sweeping tariffs on pharma, trucks, and furniture are not just trade measures, but highlight a protectionist move. US remains a critical export market for India, which means the impact could be sharp in the short term. Over the long run, Indian companies might adapt by investing in US manufacturing or by diversifying into other global markets to mitigate the risk.
So, open free Demat account today with SMC Global Securities to start your trading journey and be a part of India’s growth story.
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