Washington DC (US), April 9 : US President Donald Trump continues to be belligerent on his policy of reciprocal Tariffs despite strong opposition both within the US and outside. On Tuesday night (local time), the US President announced that Tariffs on the Pharma sector were coming soon. The sector has so far been exempt from the Tariffs.
Speaking at the National Republican Congressional Committee dinner, Trump said, "Tariffs on pharma will be there because we don't make our own pharma drugs; they are made in another country. The same packet in the US is priced at USD 10 or more. We are going to tariff pharma in such a way that companies will come rushing to us very soon. The advantage we have is, we are very big market. Very shortly, will announce a major tariff on pharma, and when these companies hear that, they will leave China and other countries because most of their products are sold here. And they will be opening their plants here," Trump said.
Indian generic drug manufacturers play a significant role in the U.S. healthcare system, supplying nearly 40 percent of the generic drugs imported into the country. In FY24, Indian pharmaceutical exports to the U.S. were valued at approximately USD 8 billion, with the industry witnessing an 8 percent compound annual growth rate (CAGR) over FY15- 24.
According to experts, if the U.S. imposes tariffs on Indian pharmaceutical products, both countries could face adverse consequences. The U.S. relies on low-cost Indian generics to control healthcare costs. Any additional tariffs on pharmaceutical imports could drive up drug prices in the U.S., leading to higher healthcare inflation. Indian manufacturers, already operating on thin margins in the generics market, may struggle to absorb these additional costs without passing them on to consumers or insurers. This could result in drug shortages and further margin compression for Indian pharma firms.
Meanwhile, the US President said that countries are ready to do anything to negotiate with the US.
He said, "I'm telling you- these countries are calling us up, kissing my a**. They are dying to make a deal- 'please sir make a deal, I'll do anything, I'll do anything sir'".
He added that although some 'rebel' Republicans argue that he must allow Congress to make a deal, he believed that if that were the case, China wouldn't have been slapped with 104 per cent tariffs, and vice versa. "I'll see some rebel Republicans that want to grandstand say, 'I think that Congress should take over negotiations.' Let me tell you, you don't negotiate like I negotiate," he said.
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