Vijayawada, September 26 (IANS). American President Donald Trump has announced a 100 percent tariff on imported branded and patented pharmaceutical products. This tariff will be applicable from 1 October 2025. Former Indian Medical Association (IMA) President of Andhra Pradesh, Dr. Rashik Sanghvi, described the move as a major threat to Indian exports and said that this will have a profound impact on the power of health services.
Speaking to IANS in Vijayawada, Dr. Sanghvi said, “Trump has recently exploded 100 percent tariff on imported drugs in the pharmaceutical sector. India is the largest exporter of drugs, where about 35 percent of the total exports come from the pharma industry. The US has 90 percent of prescription drugs, which have a large contribution of India.”
He informed that companies like Dr. Reddy’s Laboratories export huge amounts of medicines to the US. In FY 2024-25, 31 percent (about $ 8.7 billion) went to the US out of India’s $ 27.9 billion pharma exports. In the first half of 2025, $ 3.7 billion has been exported.
Trump says that there will be no tariff on companies starting production in the US, but it will be applicable to imported drugs. Dr. Sanghvi described it as a way to reduce the US budget deficit and promote local manufacturing. However, it will also have an indirect impact on the US health sector, where millions of people depend on cheap generic medicines. He said, “Drugs worth about $ 30 billion are imported from India. Tariffs may double prices, which will make American patients difficult to buy medicines.”
Dr. Sanghvi warned, “Indian generic medicines may be a bit expensive, as losses in the US market can be repaid by domestic prices. Dr. Reddy, Sun Pharma, Oroobindo and other companies will be affected, which earn 30–50 percent of revenue from the US.” He said that Trump’s policies are inconsistent, so the situation is uncertain. India is trying to strengthen trade with countries like China, South Africa, but the US market is the largest.
Expressing concern about the health sector, Dr. Sanghvi said, “The increase in the prices of drugs will affect the ability of patients. We are worried as IMA.
-IANS
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