Indian generic drugmakers face potential US tariff shock from 2028
Proposed US tariffs of 100% from August 2028 and 200% from August 2029 could pressure India’s $9.7 billion pharma export market, though low-cost generics may retain an edge. Manufacturers are weighing US production, market diversification and lower reliance on Chinese inputs.
What happened
India pharmaceutical industry · Trump plans tariffs of up to 200% on imported generics from 2028-29, exposing Indian drugmakers heavily. Indian medicines may
Key facts
- Up to 200% tariffs on imported generic medicines
- Generic imports exempt until August 1, 2028
- 100% tariff from August 2028 for one year
- 200% tariff from August 2029
- US pharmaceutical imports: $213 billion in 2025
- Finished retail-pack medicines imports: $94.1 billion in 2025
- India pharma exports to US: $9.7 billion in 2025
- US share of India's $25.8 billion global pharma exports: 37.7%
- Indian firms supply 47% of US generic prescriptions
- India accounts for an estimated 30% of US generic-import value
- About 70% of chemical APIs and nearly 90% of biologic inputs used by Indian drugmakers come from China
Why this matters
US manufacturing partnerships, acquisitions and supply-chain alliances are likely to become higher-priority deal targets for Indian drugmakers seeking to preserve access to the US market.
Also reported by
- Times of India · Business — 4h after first sighting