Trump Drops Another Bomb: Pharma Products to Face Tariffs Soon

Former U.S. President Donald Trump, known for igniting trade wars through retaliatory tariffs, has once again stirred controversy with a new announcement. Speaking at a National Republican Congressional Committee event on Tuesday night, Trump declared that the United States would soon impose heavy tariffs on imported pharmaceutical products.

He expressed concern over the lack of domestic pharmaceutical manufacturing in the U.S., stating, “America doesn’t produce enough of its own pharma products. That’s why we’re going to place tariffs on drugs imported from other countries.” Trump claimed that this move would encourage pharmaceutical companies from nations like China and others to relocate their production facilities to the U.S.

Back on April 2, Trump had already imposed tariffs on several countries, including India. At the time, pharmaceutical products were temporarily exempt. However, with this latest announcement, that exemption is expected to be lifted soon, dealing a significant blow to countries that export medicines to the U.S.

Experts believe this decision could heavily impact India, one of the largest suppliers of generic drugs to the American market. Indian pharmaceutical companies play a vital role in providing affordable, high-quality medicines to U.S. consumers. The majority of India's pharma exports to the U.S. consist of generic drugs, valued at around $9 billion—nearly 10 times the value of pharma imports India receives from the U.S.

Currently, about 70% of generic drugs available in the U.S. are imported, with roughly half of those coming from India. Companies like Zydus, Aurobindo, and Dr. Reddy’s—who produce large volumes of generics—are expected to be most affected by the tariff hike. In comparison, firms like Cipla, Lupin, and Sun Pharma may face relatively lesser impact.

In light of these developments, experts in the pharmaceutical industry are advising Indian companies to diversify away from the U.S. market and explore opportunities in Europe and other emerging markets to mitigate risk.