Indian Pharmaceutical Exports Get Reprieve from Donald Trump's Reciprocal Tariffs
Thursday, 03 April 2025, 11:26 IST
Due to the critical role of India's pharmaceuticals in the US healthcare system, exports in this sector will be exempt from President Donald Trump's reciprocal tariffs, as stated by the White House. The United States is the largest importer of pharmaceuticals from India, with imports valued at $8.73 billion during the 2024 fiscal year, according to data from the India Brand Equity Foundation (IBEF). Notably, 31.5% of India's pharmaceutical exports are directed to the US.
In a factsheet released following Trump's announcement of a 26% tariff on imports from India, the White House confirmed that pharmaceuticals would not be subject to these tariffs. Indian medications, particularly generics, play a significant role in keeping US healthcare costs manageable, as the US healthcare system is among the most expensive globally.
ING Bank has cautioned that without a trade agreement with India, Trump's tariffs could lead to increased drug prices for US consumers, given the reliance on generics supplied primarily by India. Recognizing the importance of Indian pharmaceuticals President Trump President Trump has chosen to exempt this category even in the absence of a formal deal.
According to IQVIA, a healthcare data and analytics firm, 40% of prescriptions filled in the US in 2022 were sourced from Indian companies. Indian firms supplied over half of the prescriptions in five of the top ten therapy areas by volume, including hypertension, mental health, lipid regulation, nervous system disorders, and antiulcer medications. IQVIA estimates that the use of Indian generics saved the US healthcare system $219 billion in 2022 and a total of $1.3 trillion from 2013 to 2022. These savings far exceed the value of pharmaceutical imports from India, and imposing a 26% tariff could have significant repercussions across the healthcare system, particularly for Medicare, which is already facing long-term sustainability challenges.
Additionally, the White House factsheet noted that other categories, including copper, semiconductors, lumber, bullion, energy, and certain minerals not available in the US, are also exempt from the reciprocal tariffs.
In a factsheet released following Trump's announcement of a 26% tariff on imports from India, the White House confirmed that pharmaceuticals would not be subject to these tariffs. Indian medications, particularly generics, play a significant role in keeping US healthcare costs manageable, as the US healthcare system is among the most expensive globally.
ING Bank has cautioned that without a trade agreement with India, Trump's tariffs could lead to increased drug prices for US consumers, given the reliance on generics supplied primarily by India. Recognizing the importance of Indian pharmaceuticals President Trump President Trump has chosen to exempt this category even in the absence of a formal deal.
According to IQVIA, a healthcare data and analytics firm, 40% of prescriptions filled in the US in 2022 were sourced from Indian companies. Indian firms supplied over half of the prescriptions in five of the top ten therapy areas by volume, including hypertension, mental health, lipid regulation, nervous system disorders, and antiulcer medications. IQVIA estimates that the use of Indian generics saved the US healthcare system $219 billion in 2022 and a total of $1.3 trillion from 2013 to 2022. These savings far exceed the value of pharmaceutical imports from India, and imposing a 26% tariff could have significant repercussions across the healthcare system, particularly for Medicare, which is already facing long-term sustainability challenges.
Additionally, the White House factsheet noted that other categories, including copper, semiconductors, lumber, bullion, energy, and certain minerals not available in the US, are also exempt from the reciprocal tariffs.
