WASHINGTON (Diya TV) — The Trump administration will impose equalization tariffs on Indian products from April 2, which may seriously affect the American healthcare system by raising the prices of prescription drugs.
India provides approximately half of all generic prescriptions to the United States, shipping $8.7 billion worth of drugs to the U.S. in fiscal year 2024 alone. These generic medications, which make up nine out of ten prescriptions filled in the U.S., have played a pivotal role in lowering healthcare costs.
The suggested tariffs are a reaction to India’s current duties on American products. Industry analysts, however, warn that the imposition of tariffs on Indian drugs may result in increased prices for American consumers and possible shortages of drugs. Sudarshan Jain of the Indian Pharmaceutical Alliance pointed out that production in India is much cheaper compared to the U.S., and it would be difficult for smaller generic manufacturers to shift operations locally.
Indian pharmaceutical firms, including Sun Pharmaceutical and Cipla, earn a major part of their business from the American market. Sun Pharmaceutical, India’s largest drugmaker, earned 32% of its revenue in 2024 from the U.S., while 30% of total revenue came from Cipla’s North American market. The firms are calculating the possible effect of the tariffs on their businesses and contemplating measures to offset the negative effects of the tariffs.
As a response to the impending tariffs, India’s government has made efforts to soften the potential impacts. A parliamentary committee suggested cutting tariffs on raw materials imported from abroad to assist domestic manufacturers and fix “inverted duty structures,” where raw material tariffs are higher than tariffs on finished products. The committee also urged the review of existing free trade agreements to spot and correct similar inconsistencies.
