US President Donald Trump announced new tariffs on April 2, 2025, as part of his “Liberation Day” economic plan. The tariffs include a 26 per cent of reciprocal duty on India. However, the pharmaceutical sector remains exempt from these tariffs. Industry experts share their insights on the impact of this decision.
The Indian Pharmaceutical Alliance (IPA) acknowledged the decision, emphasising the importance of the India-U.S. trade relationship. Sudarshan Jain, Secretary General of IPA:
“India and the U.S. share a strong and growing bilateral trade relationship, with a shared vision to double trade to $500 billion under the Mission 500 initiative. Pharmaceuticals remain a cornerstone of this partnership, as India plays a vital role in global and U.S. healthcare by ensuring a steady supply of affordable medicines.
Pharmaceuticals have been exempted from tariffs. The decision underscores the critical role of cost-effective, life-saving generic medicines in public health, economic stability, and national security.
The Indian pharmaceutical industry is committed to advancing the shared priorities of both nations: strengthening medicine supply chain resilience and reinforcing national security by ensuring access to affordable medicines for all.”
