US eyes pharma tariffs in next trade wave
Indian pharma exports escape current round of US reciprocal tariffs, but White House signals upcoming policy shift with possible new levies on the sector
US President Donald Trump has said that pharmaceuticals are under active review and that new tariffs targeting the sector could be announced soon. In an media interaction with Air Force One reporters, he stated, “Pharma tariffs are going to come in at levels you haven’t really seen before. We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near-future and not too distant future. It’s under review right now.”
This development follows the White House’s imposition of a 26 per cent reciprocal tariff on Indian goods, announced on Thursday, citing high Indian duties on American imports, currency issues, and non-tariff barriers.
For Indian drug exporters—who form one of the largest suppliers of generics to the US—this shift could introduce fresh uncertainty. Initial industry relief over the exemption has now given way to caution, as the prospect of a standalone tariff structure targeting pharma looms.
The US is a key market for Indian pharma products. Any shift in trade policy could impact export planning, pricing structures, and regulatory strategies, especially for companies relying on the American generics market.