New Import Duties: After Donald Trump came to power for a second time, he brought huge changes to US trade policies. The defensive trade policies began in his previous regime have been tightened. Trump, who first imposed heavy tariffs on Mexico, Canada and China imports, is now focusing on the Indian pharmaceutical industry. Generic drugs, in particular, are preparing to impose new taxes on imports. With large amounts of drug exports from India to the US, the decision will have a negative impact on domestic pharma companies.
New Import Duties on Generic Drugs
Currently, the US is a major market for the Indian pharmaceutical industry. In the fiscal year 2023-24, the US dumped 31% of the Indian drug exports. The legendary companies such as Sun Pharma, Dr. Reddy’s, Dr. Reddy’s, Cipla, Lupin and Aurobindo Pharma are supplying drugs to the US. Currently, if tariffs on Indian medicinal imports, people may be severely affected by the increase in drug prices. However, this is a risk of reducing the profits of Indian companies.
With these changes, the Government of India and the pharmaceutical industry are working to create new strategies. Considering solutions such as buying small -scale pharmaceutical companies in the US or increasing production capacity in existing subsidies. There are also routes to increase exports in other countries.
Trump’s latest decision has become a major challenge for the Indian pharmaceutical industry. Industry circles will soon take appropriate decisions on the impact of tariffs, increase in drug prices and changes in business strategies. However, it remains to be seen what the future of pharma business relations between the US and India.