Impact of Trump’s 100% tariff on imported patented/innovative drugs and its implications for Indian pharma
- Trump announced a 100% tariff on branded/patented finished drugs not manufactured in the U.S., with exemptions only for those building U.S. manufacturing capacity.
- While the U.S. remains the hub for drug approvals, innovation is increasingly global with Europe hosting major production hubs and China rising fast in biotech discovery and licensing.
- The heaviest financial exposure lies with Ireland, Switzerland, and Germany, which are top exporters of branded medicines to the U.S.
- Is the policy meant to keep China at bay? China is a growing player in biotech innovation and APIs but less dominant in exporting finished branded drugs; still, its U.S. market ambitions (especially in oncology biologics) will be hit.
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