Now Reading: Trump’s 100% drug tariffs threaten India’s pharma exports
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Trump’s 100% drug tariffs threaten India’s pharma exports
US President Donald Trump has announced plans to impose 100% tariffs on imported generic medicines from August 2028, rising to 200% after one year, in a move analysts say could disrupt India's…
US President Donald Trump has announced plans to impose 100% tariffs on imported generic medicines from August 2028, rising to 200% after one year, in a move analysts say could disrupt India's low-cost, export-driven pharmaceutical model and its status as the 'pharmacy of the world'.
Generic drugs account for 90% of prescriptions in the US, and the US market contributes about 35% of Indian pharma revenues. Leading Indian firms generated nearly $11 billion in US sales in the financial year ending March 2026.
Trump said the two-year transition period is meant to allow firms to relocate manufacturing to the US. Vivek Mishra of the Observer Research Foundation said Indian companies may need to set up bases in the US and face supply chain disruptions.
Indian Opinion Analysis
India's generic drug industry relies on thin margins and high volumes, so a 100% tariff would erase price advantage over US-made drugs. The 2028 start date gives time for lobbying or legal challenges, but the US goal is to reshore strategic drug production. Indian firms like Sun Pharma and Dr Reddy's already have US plants, but smaller exporters face existential risk. The next signal to watch is whether any trade exemptions emerge in Trump's 2025 tariff review cycle.
Source: scmp.com
This story was synthesised by AI from the source linked above.
