Pharma Tariff May Not Hit Hyderabad Drug Firms

Even as Donald Trump dashed off a missive announcing 100 per cent tariffs on branded, patented pharma products, Hyderabad, which has a significant number of pharma companies exporting to the US, may not see an impact, said industry officials. 

“The announcement is vague. The use of terms branded and patent in the message leaves scope for varied interpretation. India is predominantly a generic exporter and I don’t think it impacts Hyderabad or even India,” said R Udaya Bhasker, former director general of Pharmaceuticals



Export Promotion Council of India, a commerce ministry wing headquartered in Hyderabad.

“Generics cannot be seen as branded or patented products. We need more clarity to assess the impact, if any,” he said. Starting October 1, the US will be imposing a 100 per cent tariff on any branded or patented pharmaceutical product, unless the company is building its pharma manufacturing plant in America. 

There will be no tariff on these pharma products if construction has started, Trump had said.