European drugmakers to bear brunt of new U.S. tariffs, India less exposed: GTRI

New Delhi [India], September 26 (ANI): European countries are expected to face the most immediate and severe impact from the new U.S. tariffs on imported branded or patented pharmaceutical products, while India may remain less affected for now, according to a press release by the Global Trade Research Initiative (GTRI).

On Friday, U.S. President Donald Trump announced that from October 1, a 100 per cent tariff would be imposed on all imported branded or patented pharmaceutical products, unless the manufacturer is already building a drug-making facility in the U.S. The decision is part of the administration's "America First Manufacturing" push, aimed at forcing global companies to localise production.

"U.S. import data for 2024 shows total pharmaceutical imports (HS 30) valued at USD 212.82 billion, with India contributing USD 12.73 billion or 5.98 per cent of the total. By contrast, Ireland accounted for USD 50.35 billion (23.66 per cent), Switzerland for USD 19.03 billion (8.94 per cent), and Germany for USD 17.24 billion (8.10 per cent). These European countries, which supply high-value branded and patented drugs, are expected to face the most immediate and severe impact from the new tariffs," the release stated.

In contrast, India contributed USD 12.73 billion, or 5.98 per cent of the total imports, which was largely dominated by generic medicines.

Citing data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S), India exported USD 9.8 billion worth of pharmaceutical formulations to the U.S. in FY2025, accounting for 39.8 per cent of its total pharma exports. These shipments include tablets, capsules, and injectables for the treatment of hypertension, diabetes, infections, cardiovascular, and neurological conditions. Large volumes also cover antibiotic formulations such as amoxicillin, azithromycin, and ciprofloxacin, as well as vitamin and nutritional products.

The GTRI press release noted that India's focus on generics, rather than patented drugs, may shield much of its trade from the full force of the tariff. However, uncertainty remains regarding the treatment of "branded generics" under the new U.S. policy.

"India exports both branded and unbranded generics to the US. Branded generics are common, generic molecules sold under brand names. For instance, paracetamol may be exported as a bulk drug or in tablet form under a brand like Crocin," the release said.

For now, India's pharmaceutical exports to the U.S. are concentrated among major companies, and together, these firms supply nearly 70 per cent of shipments, primarily consisting of off-patent formulations that are central to the U.S. healthcare system.

While Europe prepares to absorb the heaviest blow, several global pharmaceutical companies, including Roche, Novartis, AstraZeneca, Eli Lilly, and GSK, have announced investments exceeding USD 350 billion in U.S. manufacturing, research, and supply chain facilities by the end of the decade. (ANI)

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