US Escalates Trade War with India: 100 Percent Tariff on Pharmaceuticals Threatens Bilateral Economic Relations

Listeners, welcome to India Tariff News and Tracker for Sunday, September 28th, 2025. This week, India continues to face intense pressure from Washington as President Trump’s administration maintains and even escalates tariffs on Indian goods. According to the Times of India and NDTV, the United States currently enforces a 50 percent tariff on most Indian imports, with a further 25 percent penalty levied due to India’s ongoing purchases of Russian crude oil. In a major turn, starting October 1st, the US will more than double down with a 100 percent tariff on branded and patented pharmaceutical products from India, a move that threatens a sector where up to 40 percent of Indian pharma revenue comes from American buyers. US Commerce Secretary Howard Lutnick has been at the forefront of these policies, bluntly stating India “must react correctly” to the United States by opening its markets and ceasing policies that, he claims, harm American interests. Lutnick, speaking to NewsNation and Bloomberg this week, insisted, “The relationship is one way. India sells everything to us but won’t buy our corn and puts tariffs on everything.” He reiterated the Trump approach: unless Indian tariffs drop, US tariffs will continue to rise. Lutnick predicted that India is posturing now but said, “your businesses are going to say you’ve got to stop this and go make a deal with America.” Negotiations continue, with India’s Commerce Minister Piyush Goyal leading a delegation to Washington just last week to push for a trade agreement. Despite this, Trump’s supporters argue that India’s refusal to curb Russian oil imports is blocking progress, and there’s no sign tariffs will be eased until India changes its stance. These tariffs are already taking a toll. NPR and WUNC report India’s shrimp export industry—once a success story—now faces “ruin” due to the steep Trump tariffs. The new 100 percent tariff on pharmaceutical products could similarly disrupt both industries and pricing worldwide, though AP7AM notes some Indian pharma firms remain cautiously optimistic that their generics business will weather the initial impact. The rhetoric is intensifying as well. According to reports from India Today and the Hindustan Times, Lutnick declared that “the 2026 economy is Donald Trump’s economy” and compared trade negotiations to a game of football, warning that if India wants to access American consumers, it will need to “play ball” and resolve these disputes. Meanwhile, Indian officials insist that real market access cannot mean opening sensitive sectors like agriculture and dairy, a sticking point that shows no sign of resolution. Stay tuned, as the coming weeks will reveal whether these high-level negotiations lead to compromise or if trade tensions—and tariffs—continue to climb. Thank you for tuning in to India Tariff News and Tracker. Be sure to subscribe for the latest updates and insights. This has been a quiet please production, for more check out quiet please dot This content was created in partnership and with the help of Artificial Intelligence AI.