India to Face Increased Pressure as US Imposes 100% Tariff on Branded Medicines
US Imposes 100% Tariff on Imported Medicines, Impacting India’s Pharmaceutical Exports: In a bold move, US President Donald Trump has announced a 100% tariff on certain imported medicines, citing concerns over national security and supply chain issues. The new tariff is expected to affect India significantly, as the country is a key supplier of generic medicines, active pharmaceutical ingredients (APIs), and biosimilars to the US market.
India supplies about 40% of the generic drugs used in the United States, with these medicines making up approximately 90% of India’s pharmaceutical exports to the US. While generic drugs are exempt from the tariff for now, branded and patented drugs could see a substantial price increase—potentially doubling their cost.
Indian pharmaceutical companies, particularly those dealing in branded drugs, may face tough choices: either absorb the higher costs or pass them on to consumers, which could lead to reduced sales in the US market. However, companies with US-based manufacturing could avoid the full impact of the tariff.
This tariff decision is likely to shake up global pharmaceutical trade, with India’s key role in supplying affordable medicines to the US now under pressure.
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