Donald Trump Imposition of Tariff on the Export of Pharmaceuticals from India Medicines will become expensive in America

There is a possibility of negative impact on the pharmaceuticals sector for US President Donald Trump’s tariff on the export of pharmaceuticals from India. However, there is no clarity about this decision of Trump. Donald Trump’s putting tariffs on India’s pharmaceutical exports will not only make medicines expensive in America but can also cause shortage of Indian medicines in America.

India’s largest drug manufacturer Sun Pharma’s Managing Director (MD) and Chairman Dilip Sanghvi said, “His company sells medicines between $ 1 to 5 to 5 dollars to America and in such a situation, the price of 10-25 percent tariff from the US will change the price.” Apart from this, due to increase in tariffs, the manufacturers will also get additional burden.

‘Customers will increase the burden due to rising prices’
Dilip Sanghvi, managing director of Sun Pharma, said, ‘The profit margin for the drugs sold in America is so low that the ability to withstand tariffs is quite limited. He further said, ‘Ultimately, the customer will be affected by the increased prices of the medicine. In the financial year 2024, Sun Pharma exported 32 percent of its total sales to the US, which is 31 percent more than the market of India.

‘Large demand for generic drugs in America’
Umang Vohra, the Global CEO of Cipla, the third largest drug in India, said, “The amount of imports of pharmaceutical products in India from America is not as important.” He further said, ‘If a big drug brand (from America or Europe) sells medicines at very high prices in India, then there is no ability to buy it in a large section of our society. Tariff in India is between 0% to 10% in any case and it is zero on most life saving medicines.

Sipla’s global CEO Umang Vohra said, “On the other hand, America needs very little tariffs from Indian companies because the generic drug industry is the only industry that reduces their (American) health care expenses’.

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