WASHINGTON: US President Donald Trump has announced that a 100 percent tariff will be imposed on imported branded and patented drugs from October 1, 2025. Trump also clarified that companies that set up plants in the United States and manufacture medicines will be exempted from the tariff.

Trump's move is to attract more investments in the country through tariff policies. He claimed that importers cannot pass on the burden of additional taxes to consumers and that this will not lead to price increase.

Trump's new tariff will significantly affect Indian pharmaceutical companies. About 40 percent of India's pharma exports go to the US market. A report released by SBI Research earlier warned that if a 50 percent tariff is imposed, the revenue of Indian pharma companies is likely to decline

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