Indian Pharma Warns US Tariffs Could Spike Drug Prices and Create Shortages

The Indian pharmaceutical industry is sounding the alarm over potential US tariffs on pharmaceutical exports, warning that such measures could lead to higher drug prices and possible shortages for American consumers. Industry experts emphasize the critical role of Indian generics in providing substantial cost savings to the US healthcare system, arguing that any tariffs imposed would ultimately be passed on to consumers.

India’s pharmaceutical exports to the US exceed $9 billion, nearly ten times the value of American pharmaceutical imports from India, which stand at around $800 million. According to Umang Vohra, global CEO of Cipla, the third-largest drug manufacturer in India, the impact of tariffs on US-India pharmaceutical trade would be limited. He noted that most lifesaving drugs imported into India from the US already incur zero tariffs, and any additional tariffs would have little effect on revenue.

Vohra further highlighted the importance of Indian generics in lowering healthcare costs in the US. A study by IQVIA, a global consulting firm, found that Indian pharmaceuticals saved the US healthcare system $219 billion in 2022, with total savings reaching $1.3 trillion from 2013 to 2022. Notably, Indian companies provided 60% of all hypertension medication prescriptions in the US, resulting in $25.3 billion in savings in 2022.

The Indian Pharmaceutical Alliance (IPA), the country’s leading industry organization, has reportedly urged the government to seek tariff exemptions on the last 40% of medications imported from the US. Experts believe this move could strengthen India’s bargaining position without significantly impacting revenue.