The United States has granted zero per cent tariff treatment to certain speciality pharmaceutical products and their associated ingredients imported from India and 19 other jurisdictions. The development was reported on September 28 and 29, 2026, following a US Commerce Department notice published in the Federal Register on September 23.
The move comes as Washington begins implementing a 100 per cent tariff on specified patented pharmaceutical products and associated ingredients.
India Among 20 Eligible Jurisdictions
India has been included in a list of 20 jurisdictions eligible for zero-tariff treatment on specified speciality medicines. The list also includes countries such as Japan, the United Kingdom, South Korea, Switzerland, Thailand, Vietnam and others, along with the European Union.
The exemption covers selected medicines used for rare diseases and certain specialised treatments. It includes drugs for infertility, cell therapies, gene therapies, antibody-drug conjugates and certain animal pharmaceuticals. Ingredients used in eligible products can also receive the zero per cent tariff treatment.
Relief Comes Alongside 100% Pharma Tariff
The zero-tariff provision comes as the US expands its Section 232 tariff regime for pharmaceuticals. A 100 per cent tariff on specified patented pharmaceutical products and associated ingredients began applying to additional covered companies from September 29.
However, the new relief does not mean that all Indian pharmaceutical exports to the US are exempt from tariffs. The zero-tariff treatment is limited to specified categories and is subject to conditions outlined by the US Commerce Department.
Generic Medicines Remain Outside the Tariff Regime
The Commerce Department has also clarified that generic pharmaceutical products and their associated ingredients are currently not covered by the Section 232 pharmaceutical tariffs.
This distinction is significant for India, which has a major presence in the global generic medicines market. The latest US decision therefore provides tariff relief for specified speciality products while leaving the existing treatment of generic medicines unchanged.
The measures are part of the broader US policy announced in April 2026 aimed at encouraging greater pharmaceutical manufacturing within the United States.