US Tariffs On Patented Drugs To Have Limited Impact On India: GTRI

GTRI noted that India remains largely protected, as its pharmaceutical exports to the US are dominated by low-cost generic medicines rather than patented drugs, PTI reported. Generics Exempt, For Now Generic medicines, which account for over 90 per cent of drug consumption in the US, have been exempted fr0m the new tariffs. This exemption is expected to remain in place for about a year to avoid supply shortages and rising healthcare costs. In 2025, India exported pharmaceutical products worth USD 9.7 billion to the US, representing 38 per cent of its total global pharma exports of USD 25.8 billion. Risks for Niche Segments GTRI founder Ajay Srivastava said, However, Indian firms producing branded or specialty drugs, or supplying inputs for patented medicines, could face tariff pressure. The larger concern is future uncertainty if tariffs are extended to generics. Part of Broader US Trade Strategy The order builds on a Section 232 investigation launched in May 2025, citing national security concerns over reliance on foreign drug supplies. Its timing also signals a continuation of Washington’s assertive trade approach, following last year’s broad tariff measures on multiple countries. According to GTRI, the latest tariffs are likely to primarily affect major exporters of patented and high-value drugs—such as Ireland, Germany, Switzerland, Belgium, Denmark, the United Kingdom, and Japan—rather than India. Legal Shift, Not Policy Change Srivastava added that recent judicial developments in the US have not altered the overall tariff strategy. Instead, the administration may increasingly rely on legal provisions such as Section 232 and Section 301 to justify trade actions. He noted that this approach creates ongoing uncertainty for global trading partners, as tariff measures could be imposed regardless of existing trade agreements. (KNN Bureau)