Donald Trump’s tariff tussle: Duties on Indian pharma would be ‘counterproductive’; America may take at least 3 years to match India’s scale, says Pharmexcil
US President Donald Trump imposed an additional 25% tariff on Indian imports on the top of an already existing 25% duty, pushing the total to 50%. These high tariffs, announced on August 6, would take effect from August 27.The pharmaceutical sector, however, received a temporary exemption from the tariff hike, highlighting India’s crucial role in ensuring affordable access to medicines for millions of Americans. Responding to the development, the Pharmaceutical Export Promotion Council (Pharmexcil) said the exemption reinforces India’s position as a vital player in global healthcare. “Tariffs on Indian pharma would be counterproductive, ultimately burdening American consumers. Indian companies manufacture low-cost generics—not high-margin products—so any tariff costs would pass directly to US consumers,” Pharmexcil chairman Namit Joshi said in a statement quoted by PTI.The US gets over 40% of generic medicines from India. These includes vital treatments for cancer, chronic illnesses, and infectious diseases. Joshi further warned that attempting to replicate India’s pharmaceutical infrastructure would take at least 3 to 5 years and come with major hurdles in scale, cost-effectiveness, and skilled manpower. “With over 700 US FDA-approved facilities and 12 per cent of industry earnings reinvested in compliance, India exports 55 per cent of its pharma products to tightly regulated markets like the US, UK and EU, a testament to its unmatched quality standards,” he added. Pharmexcil has urged both governments to maintain cooperation in order to protect the integrity of the global pharmaceutical supply chain. Sudarshan Jain, secretary general of the Indian Pharmaceutical Alliance (IPA), also confirmed that the US administration’s latest executive order exempts the pharma sector from immediate tariff imposition. “Generic medicines are important for affordable healthcare in the US and typically operate on razor-thin margins. Ensuring their consistent availability is critical for patient care,” Jain noted.He also explained that the sector remains under review, pending the outcome of an investigation under Section 232 of the Trade Expansion Act of 1962.
