Trump imposes 100% tariff on patented medicines:Move unlikely to impact India much as US exempts generic drugs

US President Donald Trump has imposed 100% tariffs, on patented medicines and ingredients used in manufacture of such drugs under the ‘Section 232 of the Trade Expansion Act of 1962’ to strengthen ‘American national security and public health.’ Is this also for India? Trump’s latest move is not likely to impact Indian pharma much as companies here mostly manufacture generic drugs (which are exempted from the 100% tariffs) and fewer patented medicines. 100% tax: A 100% tax will be added to patented medicines and their ingredients that America would import from other countries. What are patented drugs? Patented medicines are those that only one company is allowed to manufacture. These taxes will be in effect in a few months – a little sooner for big companies (120 days), but, a little later for smaller ones (180 days.) No tax on generic drugs: Regular and non-patented medicines (generics) won’t attract taxes right now, but this might change in a year. Lower tariff for trade deal partners: If the medicines are imported from countries that have already signed trade deals with the US like Europe, Japan, Korea, Switzerland and Liechtenstein, the tax will be lower, around 15%. The UK will have an even lower tax because of a special deal. Lower tax on Made In America drugs: Additionally, companies that agree to manufacture drugs in the US and sell at prices the government likes can avoid the tax altogether until 2029. Those who only agree to make medicines in the U.S. will get a tax of 20%. Other exceptions: Rare disease-curing medicines, pet medicines, and some others won’t be taxed if they are imported from countries with trade deals. What Trump wants? America First: Trump wants America to make its own medicines so we don’t have to rely on other countries. National Security: He thinks it’s a risk to depend on other countries for important medicines, especially during unforeseen circumstances Rise investments: Trump says this plan has already attracted investment commitment from drug companies of about $400 billion (₹37.20 lakh crore) in the US. America has been working on getting more medicines made in the US for a while now.