New Delhi, 13 April (IANS). Commerce Secretary Howard Lutenik said in an interview to a media outlet on Sunday that the US is planning to increase tariffs on drug products imported from China, especially China in the next one or two months.
Howard Lutenik said, “We cannot depend on China for the basic things we need, such as medicines and semiconductors.”
He added, “We cannot depend on foreign countries for the basic things we need.”
The statement came immediately after the announcement made by President Donald Trump to the National Republican Congressunal Committee, stating that the US would soon impose ‘Bada’ tariff on imported drugs.
Lutenik said, “These are things that are associated with national security and which we need to make in America itself.”
So far, pharmaceuticals have been excluded from America’s broad tariff rates, as the country is dependent on cheap generic medicines available from countries such as China and India to run its healthcare system. This is a great help, as American multinational companies sell the same drugs at very high prices that are often out of reach of common consumers.
Since China is entangled in a trade war with the US, drug exports from the communist country are clearly the first target. According to industry sources, this will increase dependence on Indian generic medicines for short term.
More than 45 percent of generic medicines used in the US are made in India. Indian pharma giants like Dr. Reddy’s, Aurobindo Pharma, Zidas LifeSyins, Sun Pharma and Gland Pharma earn more than half of their income from American consumers.
India’s pharmaceutical industry is very closely connected to the US. According to the Pharmaceuticals Export Promotion Council of India, the US had $ 8.7 billion in FY 2024 in India’s total $ 27.9 billion pharma exports.
The US is largely dependent on low -cost Indian generic medicines and the increase in fee will increase prices and lack essential medicines, especially antibiotics and general remedies.
In addition, India is interacting with the US for bilateral trade agreement. It is expected that during the conversation the fact will be kept in mind that the generic medicines required for American consumers are available at affordable prices.
-IANS
PSK/CBT
