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US plan for 100% generic-drug tariffs from 2028 threatens India’s pharma role
The proposal would start with 100.0% tariffs on imported generics in August 2028, rising to 200.0% after a year, potentially disrupting India’s export-driven supply chain.
India’s longstanding position as a major supplier of low-cost generic medicines could face pressure if the United States moves ahead with a tariff plan proposed by Donald Trump, according to SCMP Economy.
The plan would impose 100.0% tariffs on imported generic medicines starting August 2028, increasing to 200.0% after one year, with the stated goal of encouraging pharmaceutical production to return to the US.
The story says generic drugs make up about 90.0% of prescriptions filled in the US, and that the US market represents roughly 35.0% of Indian pharmaceutical industry revenues. It also notes that leading US-focused Indian companies generated nearly US$11 billion in sales in the financial year ended March 2026, citing India Ratings and Research.
SCMP Economy reports that analysts say the tariff timeline, including a two-year transition period, implies Indian manufacturers would need to establish bases in the US, with potential disruption to supply chains. It adds that Vivek Mishra of the Observer Research Foundation said many supply chains could be disrupted under the plan.