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The US President has already imposed 50% tariff on India.
American President Donald Trump has announced a 100% tariff on branded or patented medicine. This tariff will be applicable from 1 October 2025. This tax will not be levied on companies who are setting up their own plant to make medicines in America.
The US President has already imposed 50% tariff on India. This tariff has come into effect from 27 August. Exports of Indian products like clothes, gems-jewelery, furniture, sea food have become expensive. However, the drugs were excluded from this tariff.
Trump said- ‘From October 1, we will put 100% tariff on branded or patented medicine, except companies who are setting up their drug-making plant in America.
‘Laga hai hai’ means construction is going on. Therefore, if the construction has started, there will be no tax on those medicines.
India is the largest exporter of generic medicines in the world
India is the largest country to export generic medicines to America. In 2024, India sent medicines worth about $ 8.73 billion to the US, which was about 31% of the total drug exports of India. ”This tariff is not imposed on generic drugs.
- In the US, about 4 out of every 10 of the doctors who write prescription are made by Indian companies.
- According to a report, in 2022, there was $ 219 billion of US healthcare system. Between 2013 and 2022, this savings were 1.3 trillion.
- Large pharma companies of India, such as Dr. Reddy’s, Sun Pharma, Lupine not only sell generic medicines, but also sell some patent medicines.
Difference in branded or patented medicine and generic medicine
Branded Medicine:
- This is the original medicine that a pharma company is discovered after a lot of research and huge expenditure.
- The company making it gets patent rights for a fixed time (usually 20 years).
- During this time, no other company can make medicines using that formula.
- It costs a lot to recover the expenditure on research and development.
Patented medicine:
- This is the medicine that comes to the market after the patent of branded medicine is over. It is made using the same formula similar to branded medicine.
- It does not have a new patent, as it is a copy of the pre -existing formula.
- Companies making generic drugs do not have to bear the cost of research, so its price can be reduced from 80% to 90% as compared to branded drugs.
Kitchen cabinet, bathroom vanity also imposed 50% tariff
Trump has also imposed tariffs on the kitchen cabinet, bathroom vanity and all the items related to them. He said- ‘From 1 October 2025, we will start imposing 50% tariffs on the kitchen cabinet, bathroom vanity and all the items related to them. In addition, we will pay 30% tax on upholstered furniture (padded or foam furniture).
The reason for this is that other countries have been ‘full’ to the US market on a very large scale with these goods. This is a very wrong way, but due to national security and other reasons we have to save our manufacturing. Thank you for paying attention to this!
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