Trump Tariffs: Indian Pharma Dodges Bullet, But Sword May Remain

Question About Costs For Firms With US Manufacturing

Trump announced a 26% reciprocal tariff on India, but a country-agnostic exemption of pharmaceuticals implies that the interests of Indian firms are protected for now. What is Indian pharma’s business exposure and what is domestic industry saying?

US Tariffs Are Causing A Flutter Across The World
US tariffs are raising economic concerns around the world. (Shutterstock)
Key Takeaways
  • The US imposed a 26% general reciprocal tariff on imports from India, but pharma is exempt for now.
  • Industry is relieved, with officials saying India ensures a steady supply of affordable medicines.
  • However, the possibility of tariffs on pharmaceuticals at a later date remains. If imposed, prescription drug spending in the US is likely to rise.
  • India’s pharma exports to the US amounted to $8.95bn from 1 April 2024 to 28 February 2025.
  • In 2023, generics and biosimilars accounted for over 90% of prescriptions filled in the US but only 13% of prescription drug spending and less than 2% of total US spending on healthcare.

US President Donald Trump has announced a general 26% reciprocal tariff on India, but a country-agnostic exemption of categories like pharmaceuticals implies

The executive order outlined by Trump on 2 April made a few products

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