India dodges Trump’s 100% drug tariff, with a catch

Nifty22, 780.25-360.25. Motilal Oswal Midcap Fund Direct-Growth.

Key points

• US exempts India and 19 nations from 100% tariff on certain speciality drugs: Report.
• The United States has confirmed it will exempt certain speciality drugs and ingredients imported from India and 19 other countries from tariffs.
• The Economic Times daily newspaper is available online now.
• An ad valorem tariff is a tax charged as a fixed percentage of the monetary value of imported goods.

Nifty22, 780.25-360.25. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now.

US exempts India and 19 nations from 100% tariff on certain speciality drugs: Report. ET OnlineLast Updated: Sep 28, 2026, 10: 19: 00 PM IST.

Notably, the United States has confirmed it will exempt certain speciality drugs and ingredients imported from India and 19 other countries from tariffs. This decision follows US President Donald Trump's proclamation imposing a 100% tariff on specified patented pharmaceuticals. Drugs intended for rare diseases and infertility, along with their components, will qualify for the zero-tariff treatment. The exemption applies to 20 other jurisdictions that have trade agreements with the US.

Notably, the United States will not impose an ad valorem tariff on certain speciality drugs and related ingredients imported from India, even as Washington prepares to levy a 100% tariff on specified patented pharmaceutical products from September 29, PTI documented on Monday. An ad valorem tariff is a tax charged as a fixed percentage of the monetary value of imported goods. As well as cell therapies, gene therapies, antibody-drug conjugates (ADCs) and animal pharmaceuticals, the zero-tariff treatment covers drugs applied to treat rare diseases and infertility.

For now, india dodges Trump's 100% drug tariff, with a catch remains the part of the story worth watching, and further updates are likely as more details are confirmed.