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President Trump has announced a proposed 100% tariff on patented pharmaceuticals imported into the U.S. without domestic manufacturing, effective October 2025. This policy presents significant challenges for the Indian pharmaceutical sector, a major supplier of generics to the U.S., and raises concerns about potential increases in drug costs and disruptions to the American healthcare system. The article details the financial exposure of key Indian pharma companies and highlights the broader economic implications.

In a nutshell

This proposed tariff underscores a push towards pharmaceutical supply chain localization, potentially reshaping global drug manufacturing strategies. While aiming to bolster domestic production, the policy risks significantly increasing healthcare costs and disrupting the established flow of affordable medicines, particularly generics, into the U.S. market.

Source: The Economic Times