Washington, September 28 (Udaipur Kiran) : The United States has announced a zero tariff on certain pharmaceutical products from India, a key supplier of medications. This decision comes as the US prepares to impose a 100% tariff on some patented drugs and their manufacturing materials starting September 29.
The list of exempted products includes orphan drugs for rare diseases, nuclear medicines, plasma-based therapies, fertility drugs, cell therapies, gene therapies, and antibody-drug conjugates. Additionally, the exemption covers specific medical products used to address chemical, biological, radiological, and nuclear threats, as well as some veterinary treatments.
Other countries benefiting from this exemption include Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, the UK, and Vietnam.
According to the US Department of Commerce, these products from the listed countries will be subject to a zero percent tariff, as they have existing or forthcoming trade and security framework agreements with the US. This announcement is part of the implementation of President Donald Trump’s April declaration, which altered import rules concerning drugs and their manufacturing materials under Section 232 of the Trade Expansion Act.
While the new tariff regime will not apply to generic drugs and their ingredients, it is particularly significant for India, as a substantial portion of its pharmaceutical exports to the US consists of generics. Indian companies also manufacture patented drugs, active pharmaceutical ingredients (APIs), and various specialized therapies. The latest decision provides a clear pathway for these companies to access the US market without tariffs for high-cost specialized drugs that meet the specified conditions.
However, the broader US policy promoting domestic drug production through tariff measures will remain in effect. India is one of the largest producers of generic drugs globally and plays a vital role in the US healthcare supply chain, providing APIs and finished medications used in hospitals and pharmacies across the country. Thus, the trade of pharmaceuticals has become an essential component of the economic relationship between India and the US. The limited exemption for certain drugs offers a buffer against tariffs for select health products, yet it does not alter the overarching US strategy to increase domestic drug production.
Deependra Singh Chundawat is a Senior Sub-Editor at Udaipur Kiran, specializing in a wide range of technology topics including mobile phones, applications, gaming, PCs, and wearables. Along with covering the latest tech news, he also creates engaging web stories. Passionate about emerging technologies, he stays up to date with the newest trends and enjoys reading and writing about the latest mobile launches and digital innovations.