Trump’s New Tariff Plan Could Impact Indian Pharma Exports Valued At 12.72 Billion

On Tuesday, President Donald Trump announced plans for a major tariff on pharmaceutical imports, a move aimed at encouraging drug companies to shift operations to the U.S. The announcement was made during an event hosted by the National Republican Congressional Committee.

India, a key player in the global pharmaceutical market, could face significant challenges if the new tariffs are implemented. In 2024, India's pharmaceutical exports to the U.S. were valued at USD 12.72 billion, making it the country's largest industrial export sector.

Indian companies play an essential role in the U.S. healthcare system, supplying four out of every ten prescriptions filled in the U.S. Medicines from Indian firms saved the U.S. healthcare system USD 219 billion in 2022, and over the past decade, the savings amounted to USD 1.3 trillion.

Experts warn that higher tariffs could increase production costs for Indian drugmakers, reducing their price competitiveness globally. The move comes shortly after the U.S. introduced a 26% reciprocal tariff on Indian goods, citing high import duties imposed by New Delhi on American products.

Meanwhile, Trump has also targeted Taiwan Semiconductor Manufacturing Company (TSMC) with a potential 100% tax, urging the company to establish plants in the U.S.