Trump’s Tariff Relief For Medicines Brings Big Boost To Indian Pharma And U.S. Healthcare Market

The Indian pharmaceutical industry gained significant relief as U.S. President Donald Trump announced a tariff exemption for medicines, relieving concerns over the rising costs of export medicines. The move ensures that Indian drug manufacturers can continue to offer competitively priced medicines in the U.S. market without being burdened by additional import duties.

Harish K Jain, president of the Federation of Pharmaceutical Entrepreneurs (FOPE) and director of Embiotic Labs, said, “Almost one-third of pharma exports from India is to the USA. Any negative fallout can have a multiplier effect. Thanks to proactive work by our union government, we have received a reprieve this time from any tariff. However, the sword of tariff is still hanging on our heads. It is time to insulate ourselves from trade-related issues by diversifying into various markets rather than putting most eggs in one basket. Also, we need to move up the value ladder by a patient-centric approach using our homegrown talent of research and innovation”.

Industry experts noted that if tariffs had been imposed, it could have led to an increased price of lifesaving medicines, which may lead to a negative impact on both manufacturers and consumers. The policy offers a foundation that can lead to better development of Indian and US commercial trade relations.

Mazumdar Shaw, Hon. non-executive chairperson of the Association of Biotechnology Led Enterprises (ABLE) and Chairperson of Biocon Group, said, "I welcome the US government’s decision to exempt Indian pharmaceutical products from tariffs, which underscores the strong bilateral relationship between India and the US, as well as the critical role of the Indian pharmaceutical sector in enhancing public health. The emphasis on affordability, accessibility, and availability of lifesaving medicines is particularly important, as it resonates with the shared priorities of both nations. It is also encouraging to see the alignment with the ambitious Mission 500 initiative aimed at doubling trade between our countries by 2030.”

Kaushik Desai, executive committee member of the Industrial Pharmacy Section, International Pharmaceutical Federation (FIP), also commented,  “It is a temporary relief from the reciprocal tariff for pharmaceuticals as it is kept under section 132 investigation. No doubt, our Indian government has been proactive in initiating bilateral trade talks, hence the increased tariffs having less impact as compared to other countries. America is heavily dependent on India for the manufacture of generics available to US patients at good quality and affordable price. This accounts for 31% of total US exports of medicines. US manufacturing does not have huge capacity, and it is unable to produce at a low cost. Here, India has all the advantages. Pharma companies shall utilise the time gained to explore business opportunities in ROW (Rest of the World) countries.

The exemption allows Indian pharmaceutical companies to protect their market position and maintain affordability. The exemption not only benefits Indian exporters but also supports the U.S. healthcare system by maintaining access to cost-effective generic medications.