The U.S. is set to announce tariffs on pharmaceutical imports within the next two months, according to Commerce Secretary Howard Lutnick. This move, supported by President Donald Trump, aims to encourage drug companies to manufacture in the U.S. India, which supplies over 45% of U.S. generics, could face significant losses. Experts warn of potential drug shortages, higher prices, and strained supply chains. Indian firms reliant on U.S. revenues may see reduced margins as costs increase. The U.S. depends on low-cost Indian generics, and new tariffs could lead to price increases and shortages of essential drugs. Trump has emphasized the need for domestic production of pharmaceuticals, criticizing reliance on countries like India and China. Major drugmakers are lobbying for gradual implementation and investing in domestic manufacturing, though building new facilities can take years and billions of dollars. The timeline for these tariffs remains unclear, with investigations into whether drug imports threaten national security potentially lasting up to 270 days. Risks include reduced innovation funding and essential drugs disappearing from shelves due to unsustainable production costs. For India, pharma exports are crucial, while the U.S. seeks self-reliance without sacrificing accessibility or affordability.
— new from The Economic Times
