WASHINGTON (Diya TV) — After years of sparing the pharmaceutical sector from his tariff-driven trade policies, former President Donald Trump is now aiming for the industry, with a proposed “major tariff” on pharmaceutical imports that could rattle global drug supply chains — particularly those linking the United States and India.
Speaking at a National Republican Congressional Committee event on April 8, Trump said he plans to unveil a sweeping tariff on foreign-made drugs. “We are going to be announcing very shortly a major tariff on pharmaceuticals,” he said. “Once we do that, they are going to come rushing back into our country, because we are the big market.”
Trump said the move would incentivize drugmakers to shift operations back to the U.S. and reduce reliance on countries like China and India. “We want these companies to make their products here, in America, not in China or elsewhere,” he said.
Until now, pharmaceuticals — along with semiconductors — had been notably exempt from Trump’s earlier tariff policies. But this apparent shift in strategy could have deep consequences for the U.S. healthcare system and India’s booming pharmaceutical export sector.
India, the world’s largest supplier of generic drugs, commands about 20% of the global pharmaceutical market and is a crucial player in keeping U.S. healthcare costs down. According to India’s Ministry of Commerce, pharmaceutical exports to the U.S. totaled $9.7 billion in FY 2023–24, making the U.S. India’s largest pharmaceutical customer.
More than 45% of all generic medicines used in the U.S. are sourced from India, and Indian pharmaceutical companies such as Sun Pharma, Dr. Reddy’s, Cipla, Zydus Lifesciences, and Aurobindo Pharma derive a significant share of their revenues from the American market. Sun Pharma, India’s largest drugmaker, drew 32% of its revenue from the U.S. in 2024. Dr. Reddy’s Laboratories, which specializes in oncology and immunology generics, reported that 47% of its total sales came from North America.
Analysts warn that imposing tariffs on these imports could hurt both countries. In the U.S., the increased cost of importing generic drugs may drive up prices, reduce access to essential medications, and contribute to inflation. In India, where firms operate on thin margins, the additional cost burden could force companies to pass those costs onto U.S. buyers — or potentially scale back exports.
A report cited by India Today estimates that tariffs could raise the cost of generic pills in the U.S. by up to $0.12 per pill, translating to around $42 more per patient per year. Higher-cost specialty drugs — such as those used in cancer treatment — could increase by as much as $10,000 per year, according to the same report.
Experts also caution that any disruption in the supply chain could spark drug shortages in the U.S., especially in critical categories where India is a dominant supplier.
“This is a lose-lose scenario,” said one Indian pharmaceutical executive, who asked not to be named. “Higher tariffs will not only impact our margins but will also raise the cost of healthcare for Americans.”
India had breathed a sigh of relief last week when Trump appeared to exclude pharmaceuticals from his “reciprocal tariff” policy. However, his latest remarks indicate that the exemption was short-lived.
For Indian drugmakers, the proposed policy change adds a new layer of uncertainty in an already competitive landscape dominated by cost pressures, regulatory scrutiny, and patent battles. For U.S. consumers, it could mean higher pharmacy bills — especially for low-cost generics that millions rely on.
While no formal tariff proposal has been released yet, the pharmaceutical industry on both sides of the globe is bracing for the impact. Whether the threat turns into policy may depend on the outcome of the 2024 presidential election — and whether Trump’s return to the campaign trail translates into real changes in trade policy.
