On Tuesday, February 18, US President Donald Trump announced that he would like to impose a 25% or higher tariff on pharmaceuticals. He will raise the tariff throughout the year. This move could significantly impact the Indian pharma industry, as the USA is one of the largest consumers of Indian Pharma.
According to the Pharmaceutical Export Promotion Council of India reported that pharmaceutical exports reached $8.7 billion, 31% of the industry’s overall exports in the fiscal year 2024.
Despite the US being the largest pharmaceutical market for Indian drug makers, the former WTO (World Trade Organisation) Ambassador, Jayant Das Gupta, believes that the overall impact of tariffs wouldn’t be that severe because of the US’s dependence on pharma imports.
Jayant Das Gupta explained, “The pharmaceutical exports will suffer if a 25% tariff is levied on Indian imports. However, the US is a net importer of pharmaceutical products and also sources a large number of active pharmaceutical ingredients (APIs) from China. Imposing such tariffs would not necessarily help American manufacturers bridge the import gap.”
The SUN Pharmaceutical Company MD Dilip Sanghvi, who is one of the richest people in the nation, told local media that if extra tariffs are imposed, they will be passed on to consumers.
