Trump’s Tariff Blow to Indian Pharma
• Medicine War: India in Trouble
• Drug Prices to Soar Amid US Tariffs
Unmesh Gujarathi
Sprouts News Network
In a move likely to strain India’s pharmaceutical exports, U.S. President Donald Trump has announced plans to impose import tariffs on medicines, shortly after slapping a 104% import duty on Chinese goods. This fresh policy has triggered concerns in India over a potential rise in domestic drug prices and a drop in global competitiveness due to costly exports.
• India’s Pharma Industry at Risk
India is home to over 12,000 pharmaceutical companies, with hundreds of major players accounting for nearly 40% of generic drug exports to the United States. Most of these drugs are manufactured using raw materials sourced from China. Experts warn that if the U.S. proceeds with the proposed tariffs, China may respond by raising the cost of raw materials, making Indian drugs more expensive both at home and abroad.
Dr. Suresh Sarvadekar, former Assistant Medical Director, stated that this chain reaction could lead to price inflation in India’s pharmaceutical sector and disrupt the global supply chain.
• Trump’s ‘America First’ Pharma Push
While addressing the National Republican Congressional Committee in Washington, President Trump stated that the aim of the new tariff policy is to bring back foreign pharmaceutical companies to the U.S. and promote domestic drug manufacturing. Currently, India imposes around 10% import duty on U.S. drugs, whereas the U.S. does not levy any import duty on drugs from India.
• Tariff War Intensifies with China
After the U.S. imposed a 104% tariff on Chinese goods, China retaliated with an 84% import duty on American products. In response, the U.S. escalated the tariff to 125% on Chinese imports. However, Trump announced a 90-day exemption from additional tariffs for 75 countries, citing ongoing trade talks.
Despite this, a blanket 10% additional tariff is expected to be implemented across various countries starting Saturday, further escalating global trade tensions.
• U.S. Pharma Sector Sounds the Alarm
David Ricks, CEO of U.S.-based pharmaceutical giant Eli Lilly, warned that Trump’s tariff plans could significantly increase drug prices in America and disrupt supply chains. He also raised concerns that research and development of new medicines might face serious setbacks.
Trump, however, justified the move by highlighting the stark pricing disparities—citing, for example, a drug that costs $88 in London but is sold for $1,300 in the U.S.—and claimed his policies would end such imbalances.
Also Read: Dharavi Dumped: Fury Grows Among Residents Over Adani Relocation Plan.
• Impact on India’s Drug Market
India’s pharmaceutical companies, many of which are CGMP (Current Good Manufacturing Practice) certified, are known for producing high-quality, affordable generic drugs. While Chinese drugs are typically cheaper, Indian medicines are considered superior in quality.
Speaking to Sprouts News, Dr. Sarvadekar, who also serves as an Honorary Consultant at Banaras Hindu University, warned that the proposed U.S. tariffs could severely impact Indian exporters’ profit margins, competitiveness, and the domestic drug market. As export costs rise, Indian-made medicines could become more expensive in the U.S., delivering a serious blow to India’s pharmaceutical sector.