Trump Plans Big Tariff on Pharma Imports; Indian Drugmakers May Be Hit
On Tuesday, President Donald Trump announced plans to impose a “major” tariff on pharmaceutical imports into the United States.
At a National Republican Congressional Committee event, Trump said the move aims to push drug companies to relocate production to the U.S.
Pharmaceuticals and semiconductors had previously been excluded from Trump’s reciprocal tariff policies. At a House Republicans fundraiser, he declared, “We are going to be announcing very shortly a major tariff on pharmaceuticals.” He did not provide further details.
“They will rush back into our country once we do that,” Trump added. “We are the big market. That gives us an advantage.”
Trump has often criticized the lack of domestic drug manufacturing. He has promised tariffs to boost U.S. production.
Trump Plans Pharma Tariff Under Section 232; Proposes Duties on Chips, Lumber, Copper
Although the required investigation has not begun, his administration plans to use Section 232 powers to justify the levy. On March 24, he said, “We’ll be announcing pharmaceuticals at some point in the not too distant future. We no longer produce pharmaceuticals. In a conflict or crisis, we need steel and pharmaceuticals.”
Trump has already imposed 25% tariffs on steel, aluminum, and autos. He has begun the process to add similar tariffs on copper.
His administration has also proposed new duties on chips, lumber, and prescription drugs. The government has not yet shared specific details or timelines.
Indian Drugmakers Could Be Hit
Trump’s planned tariffs could significantly impact India. The country is one of the largest suppliers of generic drugs to the U.S.
In 2024, India’s pharmaceutical exports totaled $12.72 billion. It remains India’s top industrial export sector.
Indian drugmakers are vital to the U.S. healthcare system. In 2022, they supplied four of every ten prescriptions in the U.S.
Between 2013 and 2022, Indian drugs saved the U.S. $1.3 trillion. In 2022 alone, savings reached $219 billion.
Experts expect India’s generics to save another $1.3 trillion over the next five years.
Analysts warn the new tariffs could increase costs for Indian firms. Higher expenses may reduce their ability to compete on price.
The U.S. has proposed a 26% reciprocal duty on Indian goods. The move comes in response to New Delhi’s high tariffs on American imports.
