Business EconomyPosted at: Sep 29 2026 6:30PM

New Delhi, Sep 29 (UNI) India’s pharmaceutical sector has received a potential tariff reprieve from the US, with Washington exempting select medicines and related manufacturing components from import duties.
The exemption covers India and 19 other partner jurisdictions as the US moves to impose a 100 percent tariff on certain patented pharmaceutical products.
The US Commerce Department has notified the eligible countries and product categories through the Federal Register. Under the framework, qualifying products imported from the listed jurisdictions will attract a zero per cent tariff if they fall within the scope of an existing or upcoming trade and security agreement with the US.
The exemption covers medicines used in rare-disease treatment and fertility care, along with advanced cell and gene therapies and antibody-drug conjugates (ADCs). Certain veterinary healthcare products are also included. Components required for manufacturing these medicines are covered as well.
Apart from India, the zero-duty framework includes Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, the UK and Vietnam.
The tariff exemptions come against the backdrop of Washington’s broader move to raise duties on patented pharmaceutical products. The US administration had initiated the tariff framework under Section 232 of the Trade Expansion Act, with the stated objective of encouraging greater pharmaceutical manufacturing within the country.
Under the measures announced earlier this year, a 100% duty was imposed on specified patented drugs, biologics and associated ingredients. Tariffs for companies covered under the initial list took effect from July 31, while the measures are being extended to additional companies from September 29.
However, generic medicines and their ingredients continue to remain outside the scope of the Section 232 pharmaceutical tariffs. This distinction is particularly relevant for India, which is a major supplier of generic medicines to the US market.
The Commerce Department has also revised and clarified certain definitions under the tariff framework. The definition of generic pharmaceutical articles now explicitly includes unpatented animal-health products. Meanwhile, pharmaceutical articles have been defined to include finished medicines, active pharmaceutical ingredients (APIs) and key starting materials.
The latest exemptions could provide some relief to segments of India’s pharmaceutical industry that manufacture and export the specified specialty medicines or supply components used in their production. The broader impact, however, will depend on which Indian products and companies ultimately qualify under the notified trade and security framework.UNI VK AAB