US President Donald Trump's latest tariff announcement on imported generic medicines has sparked fresh concerns about the future of Indian pharmaceutical exports to the United States. Under the plan, generic drugs entering the US would continue to face a zero tariff for two years, after which the levy would rise to 100% for a year and then 200% thereafter.
The United States imported $213 billion worth of pharmaceutical products in 2025, including $94.1 billion of finished medicines sold in retail packs—the category that includes generic medicines, as per a GTRI report. India has the most at stake among generic drug exporters. It exported $25.8 billion of pharmaceuticals worldwide in 2025, of which $9.7 billion, or 37.7%, went to the US, making America India's largest pharmaceutical export market. Indian companies supply 47% of all generic prescriptions dispensed in the US, making India the country's largest source of affordable generic medicines.
