Trump Tariffs Threaten Drug Prices, Spare Indian Generics
US President Donald Trump at UNGA on Tuesday (Image X.com)
Starting October 1, patented medicines face 100% tariffs under Trump’s latest trade salvo, potentially disrupting $270B worth of imports from Europe and Asia; analysts warn of higher costs for US consumers, while Indian pharma stocks may gain from exemption on generics.
By S JHA
MUMBAI, September 26, 2025 —US President Donald Trump unveiled sweeping tariffs effective October 1, escalating his protectionist trade policy with fresh duties on pharmaceuticals, heavy trucks, and household furniture. The most controversial move is a 100% tariff on patented drugs, sparing generics but raising alarms over access to life-saving medicines.
Other measures include a 25% tariff on heavy trucks (smaller trucks remain covered under the decades-old “chicken tax”), 50% on kitchen cabinets and bathroom vanities, and 30% on upholstered furniture. Analysts estimate the pharma tariffs alone could cover nearly $270 billion worth of imports, mostly from the European Union.
In Asia, Singapore and India are among the most exposed, but India’s dominance in generic drugs provides a shield. “India is actually not exposed to this new pharma tariff as they are not patented drugs,” trade watcher Trinh noted. Still, uncertainty lingers over whether US buyers will pivot harder toward Indian suppliers, boosting exports.
Critics argue the move will effectively act as a consumption tax. The Intellectualist pointed out that with 64% of Americans living paycheck-to-paycheck, the cost of cancer drugs, vaccines, antidepressants, and heart medications could rise sharply, stoking preventable suffering. Trump defended the decision, insisting it would “bring pharmaceutical companies back to America where they should be.”
Market Impact:
Traders expect immediate volatility in US healthcare and biotech stocks, with concerns over margin pressures and supply chain disruptions. Conversely, Indian pharma ADRs and domestic generics companies may benefit from higher demand, though currency and regulatory risks remain. European drug majors could face the steepest hit if EU exports are not exempted under a prior 15% tariff arrangement.
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