Tariff War Sparks Market Turmoil, Now Targets Pharmaceuticals: Tariff War, launched by US President Donald Trump, has shook the global stock market. China increased its rates to respond to the US tariff, after which Trump increased the tariff by 104 percent.
What will be the effect on India?Challenge for India
Now Trump has also announced a heavy tariff on imported pharma products in the US, which can prove to be dangerous for many countries.
At a program by the National Republican Congressunal Committee, Trump said that this step is an incentive to the drug makers to bring back operations on US earth. He warned that companies who do not do so would have to face heavy tariffs.
What will be the effect on India?
India, which is the major supplier of drugs for the US, may be affected by this policy. In 2024, India’s total pharmaceutical exports were $ 12.72 billion, out of which the supply of $ 8.7 billion went to the US alone. In contrast, India received only $ 800 million pharma products from the US.
Challenge for India
Currently, India imposes 10.91 percent tariffs on American drugs, while America does not take any tariff on Indian medicines. On April 2, Trump kept the pharma sector out of the tariff, but now they are talking about increasing it. It is believed that today (9 April 2025) can make a big announcement about this.
If Trump implements heavy tariffs on pharma, the competition, profit margin and export of Indian companies may have a profound impact. It will be important to see how India responds to this crisis.
