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India gets zero US tariff on select speciality drugs

India has been included among countries eligible for zero United States tariffs on specified speciality pharmaceutical products and ingredients, IANS reported, citing a US Commerce Department list published days before Washington’s 100 per cent tariff on certain patented drugs takes effect on September 29.

The exemption covers orphan drugs, nuclear medicines, plasma-derived therapies, fertility drugs, cell therapies, gene therapies and antibody-drug conjugates. It also applies to medical countermeasures against chemical, biological, radiological and nuclear threats and to certain animal-health products. Qualifying products from India and other listed countries receive a zero per cent rate because they have a current or forthcoming trade and security framework agreement with the United States.

The relief implements President Donald Trump’s April proclamation adjusting pharmaceutical imports under Section 232 of the Trade Expansion Act. India sits on the list alongside Argentina, Japan, South Korea, Britain, the European Union and others. Generic pharmaceutical products and their ingredients are not subject to the Section 232 tariffs, the Commerce Department notice adds.

Why it matters: India is one of America’s leading sources of medicines, and the carve-out shields its high-value speciality segments from the coming tariff wall while generics stay outside it.

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