US President Donald Trump’s decision to impose a 100% tariff on branded and patented pharmaceutical products and their active ingredients is expected to selectively impact Indian drugmakers with meaningful exposure to innovative medicines in the US market. While most Indian pharma exporters remain insulated as the tariff excludes generic and unbranded drugs, Sun Pharma and Glenmark Pharmaceuticals emerge as the most exposed, given their focus on patented products and direct commercial presence in the US specialty drug space.
Notably, the tariffs will be implemented in phases beginning July 31, 2026, with some companies facing delayed timelines based on existing agreements. The decision is expected to have far-reaching implications for global pharmaceutical trade, especially for countries that serve as major suppliers of finished drugs and raw materials.
Sun Pharma’s exposure to tariffs
India and China are among the largest producers of generic medicines and active pharmaceutical ingredients globally, supplying a significant share of the US market. While generics are currently exempt, any future expansion of tariffs could have wider implications for global drug pricing and supply chains.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
