Politics · India Bureau
US grants India tariff exemption on specialty pharmaceutical imports
The United States has exempted India and 19 other nations from a 100 per cent tariff on specialty drugs and related ingredients used to treat rare medical conditions. The exemption takes effect as Washington implements broader tariffs on patented pharmaceutical imports from September 29.
LSN India ·
The US Commerce Department has released a list of 20 countries, including India, that will face zero ad valorem tariffs on certain specialty pharmaceutical products and their associated ingredients. An ad valorem tariff is calculated as a percentage of the goods' monetary value.
The exemption covers drugs designated for rare diseases, infertility treatments, cell therapies, gene therapies, and antibody-drug conjugate therapies, as well as animal pharmaceuticals and their components. The move provides significant relief for Indian pharmaceutical manufacturers who supply these categories of medicines to the American market.
President Donald Trump issued a proclamation in April directing the imposition of 100 per cent tariffs on imports of patented pharmaceuticals, biologics, and associated ingredients into the US. The administration cited efforts to encourage domestic pharmaceutical production as the rationale for the broad tariff policy.
The exemption list, published in the Federal Register ahead of the September 29 implementation date, signals that the Trump administration has carved out exceptions for certain critical therapeutic categories. Indian pharmaceutical companies, which supply significant volumes of generic and specialty drugs to US markets, are among the beneficiaries of this targeted exemption.