President Donald Trump’s newly announced tariffs have spared key sectors, pharmaceuticals, and semiconductors, offering relief to industries amid rising global trade tensions.
Recently, Trump unveiled a comprehensive tariff plan to reduce the U.S. trade deficit and bolster domestic manufacturing. The plan imposes a 10% universal tariff on imports from various countries, including China, India, Vietnam, and Japan. Notably, imports from China face tariffs as high as 54%, while the overall U.S. average tariff rate has surged to approximately 25%.
Trump initially proposed a 25% tariff on pharmaceuticals but has now exempted both the pharmaceutical and semiconductor industries from these tariffs, offering crucial relief to these sectors.
In 2024, India exported $8 billion worth of pharmaceutical products to the U.S., representing 40% of the generic drugs consumed there. With over 650 manufacturing facilities approved by the U.S. Food and Drug Administration (USFDA), India holds the second-largest number of such facilities globally, after the U.S.
“The Indian pharmaceutical industry is committed to advancing the shared priorities of both nations, strengthening medicine supply chain resilience and reinforcing national security by ensuring access to affordable medicines for all,” said Sudarshan Jain, secretary-general of IPA. He also added that the pharma sector could play a big role if Indo-US bilateral trade aspires to reach $500 billion by the end of this decade.
While President Trump’s tariff strategy aims to strengthen domestic industries by imposing higher duties on imports, the temporary relief exemptions for pharmaceuticals and semiconductors provide immediate relief. However, the long-term economic effects remain uncertain.
