The United States has exempted certain specialty pharmaceutical products and their associated ingredients imported from India from a new 100% tariff, giving Indian drugmakers relief as Washington moves to raise duties on some pharmaceutical imports.

The 0% tariff rate does not apply to every drug on the shelf, it is targeted at specialized medicines. The exemption covers India with 19 other countries. The US Commerce Department published the list ahead of the new tariff taking effect on September 29. The zero duty rate applies to a range of specialty medicines and their ingredients. These include drugs used to treat rare diseases, fertility medicines, cell and gene therapies, antibody drugs and certain plasma derived nuclear medicines. Some medicines used for animal health are also covered.

The exemption is particularly relevant for medicines where higher import duty could affect supplies to the US.

How India secured 0% US tariff status for specialty drug exports?

India was included alongside key global partners such as The EU (European Union), the UK, Japan, South Korea, and Taiwan because these countries already have trade and security deals with the US or are in talks to make such agreements.

What does this mean for India’s Pharma Industry?

For Indian pharma exporters, the decision offers greater clarity and protects a key part of the country’s export sector. Everyday medicines, which make up most of India’s drug exports to the US, will not be affected by the tariffs. Supplies of Indian generic medicines are expected to continue as usual.

The zero duty rate could also encourage Indian biopharma companies to invest in research and the production of advanced medicines.

The move allows Washington to support domestic drug manufacturing  while exempting some high tech medicines from the tariffs. This could help US patients continue to access essential treatments while maintaining stable trade relations with India.

Also See: Trump’s 100 pc Tariff on Pharma to Harm only US, not India: Experts

What about Indian Generic Medicines?

Indian generic medicines are not covered by the new Section 232 pharmaceutical tariffs. The US Commerce Department has specifically stated that generic pharmaceutical products and their associated ingredients are outside the scope of these tariffs.

This means the new 100 per cent tariff will mainly affect certain patented pharmaceutical products and related ingredients rather than a wider range of generic medicines supplied by Indian companies.

(Rh/AM)