On July 22, 2026, U.S. President Donald Trump announced a two‑year zero‑tariff period for generic drugs imported into the United States. After August 2028, tariffs will rise to 100% for one year and then to 200%. The move aims to encourage reshoring of pharmaceutical manufacturing and reduce dependence on overseas supply chains.
Key Developments
- Zero tariff on generic drugs until August 1, 2028.
- Tariff escalation to 100% (2028‑2029) and 200% thereafter.
- Indian pharma exports to the U.S. valued at $9.7 billion in 2025 (37.7% of total pharma exports).
- Nifty Pharma index fell 1.31% on the news.
- Industry bodies such as Pharmexcil and the Indian Pharmaceutical Alliance urged a measured response.
Important Facts
According to the Global Trade Research Initiative (GTRI), India exported pharmaceutical products worth $25.8 billion in 2025, with the United States as the largest market. Indian firms supply nearly 47% of all generic prescriptions in the U.S., though they capture only about 30% of the value of U.S. generic imports because of low pricing.
The United States imported total pharmaceutical products worth $213 billion in 2025, including $94.1 billion in finished medicines sold in retail packs. A large share of Indian generic drugs relies on