India has been included among the countries eligible for zero US tariffs on several categories of speciality pharmaceutical products and ingredients, providing targeted relief to Indian drugmakers as Washington prepares to impose higher duties on certain patented pharmaceutical imports.
The US Commerce Department has published a list of countries whose eligible pharmaceutical products can receive a zero per cent tariff under the latest US trade measures. The move comes as the US prepares to impose a 100 per cent tariff on certain patented pharmaceutical products and their associated ingredients from September 29.
However, the exemption does not apply to all pharmaceutical products exported from India. It covers specific medicines and ingredients identified under a presidential proclamation issued in April.
Eligible categories include orphan drugs, nuclear medicines, plasma-derived therapies, fertility drugs, cell therapies, gene therapies and antibody-drug conjugates. The exemption also covers certain medical countermeasures linked to chemical, biological, radiological and nuclear threats, as well as some animal-health products.
India has been listed alongside Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland and Liechtenstein, Taiwan, Thailand, Britain and Vietnam.
According to the Commerce Department notice, qualifying products from these jurisdictions can receive a zero per cent tariff because the countries have a current or forthcoming trade and security framework agreement with the United States.
The exemptions are part of the implementation of US President Donald Trump's April proclamation concerning imports of pharmaceuticals and pharmaceutical ingredients under Section 232 of the Trade Expansion Act.
The proclamation introduced a 100 per cent tariff on specified patented pharmaceutical products and ingredients. It took effect on July 31 for companies identified in one annex and will apply to other covered companies from September 29.
Generic medicines remain outside Section 232 tariffs
The distinction between patented and generic medicines is significant for India. The Commerce Department notice states that generic pharmaceutical products and their associated ingredients are not subject to the Section 232 pharmaceutical tariffs.
India is one of the world's largest manufacturers of generic medicines and is a major supplier to the US healthcare system. Indian pharmaceutical companies also supply active pharmaceutical ingredients and finished formulations used by American hospitals, pharmacies and patients.
The latest exemption therefore provides a defined route for Indian manufacturers to maintain duty-free access for certain high-value speciality therapies, while the broader US tariff policy continues to encourage greater pharmaceutical manufacturing within the country.
Pharmaceuticals remain an important component of the wider India-US economic relationship, with Indian companies supplying medicines, ingredients and specialised therapies to the American market.
The narrow exemption protects selected pharmaceutical and healthcare products from the new duties while leaving Washington's broader push to expand domestic drug production in place.
