India Expects a Partial or Full Rollback on Hefty Tariff Imposed on Pharma Products

 New Delhi: With the cent percent tariff imposed by the US on imports of branded and patented pharmaceutical drugs, starting October 1, 2025 across the board, including India, New Delhi on Friday did not react officially though, the government, however, is confident that India will continue to engage with the US officials even after the meeting held from September 22-24, and a decision to roll back — either fully or partially — on such ‘hefty’ tariff, especially on pharma products, is expected soon, a top source privy to development said.

“We are not at all disturbed with the ‘harsh’ decision of the US President Donald Trump as far as pharma products are concerned, rather we are exploring all possible ways to ease the Washington pressure in this matter. In the last meeting, India and the US have agreed to keep working together to finalise a trade agreement as early as possible that benefits both countries,” the source said.

In response to media queries, the ministry of external affairs (MEA) also said "concerned departments" of the government were "looking into" the latest tariff announcements by the US and advised that specific queries on implications be directed to the commerce ministry. Trump’s decision on an 'unexpected' 100 per cent tariff, even on Indian pharma came soon after an Indian delegation led by commerce and industry minister Piyush Goyal returned from the US on September 24 after holding three-day talks with his trade counterpart and other top US officials as well.

Meanwhile, the commerce ministry on Friday also issued a statement, saying the delegation held constructive meetings with the US government officials on various aspects of the trade deal. “India and the US have discussed various aspects of the proposed trade agreement, and both sides have decided to continue their engagements to achieve early conclusion of a mutually beneficial trade pact. Both sides exchanged views on possible contours of the deal, and it was decided to continue the engagements with a view to achieving early conclusion of a mutually beneficial trade agreement,” the statement said.

However, insider’s sources said the decision could be rolled back, either fully or partially, amid reports that there would be a meeting between Prime Minister Narendra Modi and Donald Trump soon to resolve the bilateral trade agreement. “Talks are going on and there is nothing to worry about. We are ready with plan B. You will soon see results, and the trade issue will be amicably resolved,” the sources said.

For India, which is a key supplier of pharmaceutical products the worldover; the US is its single largest market. About 31 per cent of India’s total pharma exports are directed towards the US alone. In 2024, India’s pharma exports to the US stood at around US$8.7 billion in FY24.

US Secretary of State Marco Rubio had earlier described the relationship with India as of ‘critical importance’ to Washington, after meeting external affairs minister S Jaishankar on the sidelines of the United Nations General Assembly (UNGA) in New York.