Archive · 31 Jul 2026
US Tariff Threats Could Push Indian Pharma Up Value Chain
Donald Trump said the United States might put extra taxes on some goods coming from India.
One tax is 10% on many items, but medicines from India are not included.
He also said that from 2028, medicines that are not brand‑name could cost double the price in the U.S. This could hurt people who need cheap medicine.
Indian drug companies might build factories in the U.S. to avoid the tax.
The U.S. could end up paying more for medicines that were once very cheap.
Trump announced a 10% tariff on Indian imports (excluding pharma) effective July 24, 2024.
A second threat: 100% tariff on generic medicines from August 1, 2028, rising to 200% thereafter.
The 200% tariff would target U.S. imports of generic medicines, affecting Indian pharma exports to the U.S.
Indian pharma firms may invest in U.S. R&D and manufacturing of complex generics to avoid tariffs.
The tariff could reduce U.S. savings from Indian generics, raising drug costs for patients.
- Who
- Donald Trump
- What
- Announced tariff threats on Indian imports and generic medicines
- When
- Last week, with tariffs effective July 24, 2024 and from Aug 1, 2028
- Where
- United States
- Why
- To address forced labor concerns, national security, and secure medicine supply
- Tariff on Indian imports
- 10% (effective July 24, 2024)
- Tariff on generic medicines
- 100% from Aug 1, 2028, rising to 200% thereafter
- Target market
- United States
- Indian pharma export share to US
- 36% of $28B exports
- US share of Indian pharma formulations
- 41%