Indian Pharma Urges US to Exempt Generics as 50 Percent Tariffs Loom National Security Probe Sparks Supply Fears

India’s pharmaceutical sector is calling on the US government to exclude generic drug imports from a sweeping national security investigation that could trigger major supply disruptions and price spikes. Industry leaders voiced their appeal during a recent meeting with Commerce Minister Piyush Goyal, warning that new US trade actions could threaten affordable medication access in both countries.

The US has launched an inquiry under Section 232 of the Trade Expansion Act, 1962, targeting pharmaceutical imports and granting the President broad tariff powers if national security is deemed at risk. So far, medicines have been spared from a 50% tariff set to begin August 27, but uncertainty remains as India and the US negotiate a new bilateral trade pact.

With Indian generics supplying a large share of America’s prescription market, experts warn that including these drugs in the probe could spark global shortages and volatility. The industry is urging policymakers to prioritize patient access and supply chain stability as trade tensions rise.