‘High tariffs on pharma will affect Indian producers & US consumers’

US President Donald Trump’s decision to introduce a ‘major’ tariff on pharmaceutical imports from India, has left Indian pharma manufacturers and freight forwarders in state of distress and despair. As the decision would impact Indian pharma business in a big way, it will not only affect Indian pharma manufacturers but also US Consumers. It may lead to increase prices and shortage of drugs. It will also disturb global competitiveness. Reacting on it, Vipin Vohra, Chairman, Continental Carriers said, “The proposed U.S. tariffs on pharmaceutical imports could significantly impact India, the third-largest producer and key supplier of generics, especially as the U.S. accounts for over 30% of Indian pharma exports. Higher tariffs may erode cost competitiveness and disrupt supply chains, affecting both Indian manufacturers and U.S. consumers. Given that Indian generics have saved the U.S. billions in healthcare costs, such tariffs may increase drug prices and strain global healthcare affordability.” Sharing similar sentiments, Sunil Kohli, Managing Director, Rahat Cargo added, “America is India’s largest export market for pharmaceutical goods. In FY 24, of India’s $27.9 billion worth of pharma exports, 31 per cent or $8.7 billion to the US, according to the Pharmaceuticals Export Promotion Council of India. It’s further apprehended that higher US tariffs on pharma imports could severely impact both Washington and New Delhi as they will raise production costs, eroding price competitiveness for manufacturers and higher prices for customers. Further, the Indian companies, operating on thin margins in the US generics space, may struggle to absorb costs and end up passing them on to US consumers or insurers. In conclusion, such a proposed tariff would overall result in a detrimental effect to both countries.”