Indian pharmaceutical companies, including Sun Pharma, Lupin, Cipla, and several others, are likely to remain in the spotlight after US President Donald Trump unveiled a fresh policy imposing a 100% tariff on imported branded and patented medicines, effective October 1, 2025.
The new rule, however, spares companies that already operate drug manufacturing facilities in the United States or are in the process of setting them up.
This move follows Trump’s earlier statement in August, where he cautioned that tariffs on pharmaceutical imports could eventually soar as high as 250%. At that time, he indicated a phased approach—beginning with a modest tariff, then moving up to 150%, and ultimately reaching 250%.
The pharmaceutical industry has been under scrutiny by the US Commerce Department as part of a national security review under Section 232. The scope of the ongoing probe has now widened to include additional medical products such as surgical masks, N95 respirators, gloves, and critical devices like syringes and needles.
Notably, the Commerce Department clarified that categories such as prescription drugs, OTC medicines, biologics, and specialty drugs will not be part of this particular investigation, as they are already being assessed under a separate Section 232 inquiry.
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