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US exempts India, 19 others from 100% pharma tariff

India has won significant relief from America’s punishing drug tariffs. The US has granted zero-tariff treatment to select specialty pharmaceutical products from India and 19 other jurisdictions, shielding them from the 100% duty on patented drugs that took effect on September 29, 2026.

The exemption came through a Commerce Department Bureau of Industry and Security notice published in the Federal Register on September 23. It covers orphan drugs, nuclear medicines, plasma-derived therapies, fertility drugs, cell and gene therapies, antibody-drug conjugates such as Enhertu, countermeasures for chemical, biological, radiological and nuclear threats, and animal health products.

The carve-out follows President Trump’s April 2 proclamation imposing 100% tariffs on patented pharmaceuticals under Section 232 national-security powers. Generic drugs were already exempt, and the new notice creates an application route for products needed on urgent health grounds.

The 20 covered jurisdictions include the EU, the UK, Japan, South Korea and Switzerland alongside India. For Indian drugmakers with growing specialty portfolios, the exemption preserves access to the world’s largest pharma market.

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