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Trump said that we want medicines to be made in our country itself. This tariff can affect the Indian pharma sector.
US President Donald Trump has threatened to impose tariffs 250% on pharmaceutical products. In an interview to CNBC, Trump said that he would initially put small tariffs on pharmaceuticals, but then increase it to 150% and then 250% in one to one and a half years.
Trump said that we want medicines to be made in our country itself. He believes that the US is very much dependent on foreign countries for pharma products, especially on India and China. This tariff can affect the Indian pharma sector.
The US buys generic medicines, vaccines and active ingredients from India. In 2025, India’s pharmaceutical exports to the US were more than $ 7.5 billion (about 65 thousand crores) in 2025.
If a tariff is imposed on pharma, it will be a major setback for India’s exports, as India has about 40% stake in India’s pharma exports.
Indian companies damage due to tariff on medicines
If Trump increases tariffs by 250% on medicines, Indian companies will have to double their products in the US. This will reduce the profits of companies. Indian pharma companies may consider increasing manufacturing in the US to avoid damage.
Increase tariff also damage America
Most cheap generic drugs in the US come from India and China. Patients will have to bear the loss of getting expensive medicine, which will increase the difficulties of the people of America. According to the US Food and Drug Administration, about 40% of all the generic drugs used in the US are sent from India.
Drugs exported from India contain antibiotics, antidepressants and heart disease drugs. India makes generic medicines cheaply, saving the US healthcare system every year.
Threatened to increase tariffs on medicines that have been given in April
Earlier in April, Trump said that we will soon put heavy tariffs on medicines. Trump said that his aim is to bring companies making drugs abroad back into the US and promote domestic medicine industry.
Trump said that other countries put a lot of pressure to keep the prices of drugs low. There these companies sell cheap medicine, but this does not happen in America. Once these pharmaceutical companies are targeted, all these companies will return to America.
America does not put tariffs on medicines right now
Trump announced the tariff on 2 April. Under this, the US imposed 10% baseline tariffs on every country. The drug industry was exempted in this tariff. The tariff was then postponed by 1 August for 90 days.
Then on July 30, Trump announced to impose 26% tariff on India which will be applicable from 7 August. In this, information about how much tariff will be taken on pharmaceutical products was not given. So far, the Trump administration does not impose any tariff on medicines coming from India.
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