US President Donald Trump has announced that he will impose 100% duties on branded drugs starting October 1, unless manufacturers are actively building plants in the country. The exceptions cover firms that are either "breaking ground" or being "under construction".

The announcement came as a shock, as Trump had previously hinted that tariffs on pharma imports would be phased, starting with “small” rates before increasing to 150 percent over a year, so as to give companies time to relocate to the US.

Trump’s move aimed at boosting domestic production will come as a huge shock to India, the leading pharma exporter to the US. The US is the world’s largest pharmaceutical market, importing products worth US$212.67 billion in 2024. India is the major supplier of generic medicines to the U.S.

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