By Manisha Sahu, America News World Sept 26, 2025
In a dramatic escalation of his protectionist trade agenda, U.S. President Donald Trump announced a sweeping expansion of tariffs on Friday, targeting a wide array of products including branded pharmaceuticals, furniture, and heavy trucks. The move, invoked under Section 232 of the Trade Expansion Act of 1962 citing “national security,” is set to take effect from October 1, 2025, and could have significant repercussions for countries like India.
The headline measure involves a 100% tariff on all branded or patented pharmaceutical products imported into the United States. However, Trump clarified that companies currently building or constructing manufacturing plants within the U.S. would be exempt from these penalties. “Starting October 1st, 2025, we will be imposing a 100 per cent Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump declared in a post on TruthSocial. The president emphasized that “breaking ground” or being “under construction” would qualify for an exemption.
In addition, Trump announced a 50% tariff on kitchen cabinets, bathroom vanities, and related products, a 30% tariff on upholstered furniture, and a 25% tariff on heavy trucks. The stated rationale for these measures was to curb what he termed as “flooding” of the U.S. market by foreign goods, which he argued undermined America’s domestic manufacturing base. “It is a very unfair practice, but we must protect, for National Security and other reasons, our Manufacturing process,” Trump asserted.
Limited Short-Term Impact on Indian Pharma
For India, the immediate impact of the 100% pharmaceutical tariffs may be limited. India is the world’s largest producer of generic drugs, supplying nearly 20% of global demand, and most of its exports to the U.S. are in the generic category rather than patented or branded medicines. However, industry experts warn that the new measures could pose hurdles to India’s long-term strategy of moving up the value chain.
Over the past decade, top Indian pharmaceutical companies have been investing heavily in research and development, aiming to secure patents and develop novel drugs. These efforts align with the Indian government’s Production-Linked Incentive (PLI) scheme for pharmaceuticals, launched in 2021 with a financial outlay of Rs 15,000 crore. The scheme, which runs through FY 2027-28, specifically incentivizes high-value pharmaceutical production, including patented and off-patent drugs, biopharmaceuticals, complex generics, and drugs for critical conditions such as cancer and autoimmune diseases.
Trump’s tariff move therefore risks disrupting India’s pharmaceutical growth trajectory. Companies that are in advanced stages of developing or exporting patented drugs to the U.S. could see reduced competitiveness unless they establish local manufacturing operations within the U.S.—a costly and time-intensive proposition.
Pressure on India’s Export Sectors
India is already grappling with the consequences of earlier tariff hikes by the Trump administration. Washington imposed a 50% tariff on Indian steel, aluminium, and copper products under Section 232, and reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA) have targeted Indian exports in textiles, footwear, and marine products. These levies have raised concerns in New Delhi about job losses in labor-intensive industries.
The latest tariffs come at a particularly delicate time. Trump’s powers under IEEPA could soon be curtailed if the U.S. Supreme Court issues an adverse ruling next month. However, Section 232 tariffs are harder to challenge, as they are shielded by the national security provision—a justification that the U.S. Supreme Court has historically declined to contest. This makes Section 232 a more durable tool for Trump’s trade wars.
Expanding the Section 232 Toolkit
The announcement on pharmaceuticals follows a series of fresh investigations launched by the U.S. Department of Commerce into various product categories. Beyond steel, aluminium, and copper, the new probes cover timber and lumber, semiconductors, pharmaceutical ingredients, trucks, processed critical minerals, aircraft components, polysilicon, wind turbines, and unmanned aircraft systems.