Big relief for Indian pharma: US puts India among 20 countries getting 0% tariff on select speciality drugs
The move offers relief on rare-disease treatments even as 100 per cent duties loom for certain patented pharmaceuticals.
- Sep 29, 2026,
- Updated Sep 29, 2026 7:28 AM IST
In relief for Indian exporters of speciality medicines, the US will not charge any ad valorem tariff on certain drugs and associated ingredients used to treat rare medical conditions when they are imported from India and 19 other jurisdictions.
The exemption comes even as Washington prepares to impose a 100 per cent tariff on certain patented pharmaceutical imports and their associated ingredients from September 29. The US Commerce Department has published the list of eligible jurisdictions in the Federal Register as part of the implementation of President Donald Trump’s April 2 proclamation aimed at encouraging domestic production.
US zero-tariff relief for select speciality drugs
An ad valorem tariff is a set percentage of the monetary value of the goods to be taxed, according to the World Customs Organisation. Under the latest US notice, eligible products for the zero per cent tariff rate include certain speciality medicines and their components.
Which drugs are covered
The Commerce Department notice says the zero-tariff category covers all drugs designated for rare diseases, infertility treatments, cell therapies, gene therapies, antibody-drug conjugates and animal pharmaceuticals.
Components of these drugs are also subject to a zero per cent tariff rate. The exemption covers speciality medicines rather than the broader pharmaceutical trade. It includes drugs where all approved indications are for orphan diseases, along with nuclear medicines, plasma-derived therapies and fertility drugs.
Certain medical countermeasures related to chemical, biological, radiological and nuclear threats are also included.
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India among 20 eligible jurisdictions
Besides India, the other countries and jurisdictions in the zero-tariff category are Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, Britain and Vietnam.
The notice said qualifying products from these jurisdictions could receive a zero per cent tariff because they have a current or forthcoming trade and security framework agreement with the US. The Commerce Department’s Bureau of Industry and Security also said the exemption can apply to products that Commerce determines meet an urgent US health need.
Which drugs will have 100 per cent tariffs
Trump’s April 2 proclamation imposed a 100 per cent tariff on specified patented pharmaceuticals, biologics and associated ingredients under Section 232 of the Trade Expansion Act. The measure took effect on July 31 for companies named in one annex of the proclamation and will apply to other covered companies from September 29.
According to the Commerce Department notice, generic pharmaceutical products and their associated ingredients are not subject to the Section 232 pharmaceutical tariffs. This distinction is significant for India, whose pharmaceutical exports to the US have historically been driven heavily by generic medicines.
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Technical changes and relief process
The notice also makes several technical corrections to the original proclamation. These include amending the definition of generic pharmaceutical articles to specifically include unpatented animal health products. It also clarifies that the definition of pharmaceutical articles covers only finished pharmaceutical products, their active pharmaceutical ingredients, and the key starting materials of such ingredients.
The Commerce Department has also created a process through which companies can seek tariff relief for speciality pharmaceutical products that meet an urgent US health need. Applications must include details such as the product’s classification, active ingredients, manufacturer, country of origin and the medical need involved. Commerce will review such requests on a case-by-case basis in consultation with the US Trade Representative and the Department of Health and Human Services.
The latest notice further adds a zero-tariff provision for certain products imported solely for clinical trials, research and development, or other non-commercial purposes.
In relief for Indian exporters of speciality medicines, the US will not charge any ad valorem tariff on certain drugs and associated ingredients used to treat rare medical conditions when they are imported from India and 19 other jurisdictions.
The exemption comes even as Washington prepares to impose a 100 per cent tariff on certain patented pharmaceutical imports and their associated ingredients from September 29. The US Commerce Department has published the list of eligible jurisdictions in the Federal Register as part of the implementation of President Donald Trump’s April 2 proclamation aimed at encouraging domestic production.
US zero-tariff relief for select speciality drugs
An ad valorem tariff is a set percentage of the monetary value of the goods to be taxed, according to the World Customs Organisation. Under the latest US notice, eligible products for the zero per cent tariff rate include certain speciality medicines and their components.
Which drugs are covered
The Commerce Department notice says the zero-tariff category covers all drugs designated for rare diseases, infertility treatments, cell therapies, gene therapies, antibody-drug conjugates and animal pharmaceuticals.
Components of these drugs are also subject to a zero per cent tariff rate. The exemption covers speciality medicines rather than the broader pharmaceutical trade. It includes drugs where all approved indications are for orphan diseases, along with nuclear medicines, plasma-derived therapies and fertility drugs.
Certain medical countermeasures related to chemical, biological, radiological and nuclear threats are also included.
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India among 20 eligible jurisdictions
Besides India, the other countries and jurisdictions in the zero-tariff category are Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, Britain and Vietnam.
The notice said qualifying products from these jurisdictions could receive a zero per cent tariff because they have a current or forthcoming trade and security framework agreement with the US. The Commerce Department’s Bureau of Industry and Security also said the exemption can apply to products that Commerce determines meet an urgent US health need.
Which drugs will have 100 per cent tariffs
Trump’s April 2 proclamation imposed a 100 per cent tariff on specified patented pharmaceuticals, biologics and associated ingredients under Section 232 of the Trade Expansion Act. The measure took effect on July 31 for companies named in one annex of the proclamation and will apply to other covered companies from September 29.
According to the Commerce Department notice, generic pharmaceutical products and their associated ingredients are not subject to the Section 232 pharmaceutical tariffs. This distinction is significant for India, whose pharmaceutical exports to the US have historically been driven heavily by generic medicines.
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Technical changes and relief process
The notice also makes several technical corrections to the original proclamation. These include amending the definition of generic pharmaceutical articles to specifically include unpatented animal health products. It also clarifies that the definition of pharmaceutical articles covers only finished pharmaceutical products, their active pharmaceutical ingredients, and the key starting materials of such ingredients.
The Commerce Department has also created a process through which companies can seek tariff relief for speciality pharmaceutical products that meet an urgent US health need. Applications must include details such as the product’s classification, active ingredients, manufacturer, country of origin and the medical need involved. Commerce will review such requests on a case-by-case basis in consultation with the US Trade Representative and the Department of Health and Human Services.
The latest notice further adds a zero-tariff provision for certain products imported solely for clinical trials, research and development, or other non-commercial purposes.