On Wednesday, July 22nd, 2026, it was reported from Bengaluru that Washington’s decision to impose a 100% tariff on generic drug imports starting in 2028 poses a significant threat to India’s pharmaceutical industry access to its largest market, the United States. The Global Trade Research Initiative estimates that the US accounted for about 37% of India’s nearly $26 billion in pharmaceutical exports in 2025.
This tariff move has caused shares of several Indian drugmakers to decline amid concerns that relocating production to the US to avoid tariffs would be a massive and challenging undertaking. Additionally, the levy could accelerate the Indian pharmaceutical sector’s push into higher-value medicines as a strategic response.
The tariff policy, associated with former President Trump’s administration, underscores growing trade tensions impacting global pharmaceutical supply chains and highlights the challenges Indian pharma companies face in maintaining their market share in the US.
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