Trump’s Tariffs On India Could Lead To Higher Medical Costs For Americans

India-West News Desk

WASHINGTON, DC – With Donald Trump’s tariffs on India set to take effect next month, many Americans could face higher medical costs, particularly for prescription drugs, reports BBC.

The tariffs, announced to take effect by April 2, are a retaliatory measure against India’s own taxes on US goods. From all indications, Trump is still pushing back on conciliatory efforts by India including the unscheduled visit by commerce minister Piyush Goyal.

A significant concern for the US is the impact on Indian-made generic drugs that account for around 90% of prescriptions in the US, saving billions in healthcare costs annually. BBC reports that in 2022, the savings from these generics reached $219 billion. Without a deal, however, some Indian generics could become unaffordable, potentially leading to shortages, experts warn.

Over 60% of prescriptions for conditions like hypertension and mental health disorders in the US rely on Indian-made drugs, with sertraline—commonly prescribed for depression—serving as a key example. Many of these drugs cost significantly less than their brand-name counterparts, reports BBC.

Trump’s tariffs, already affecting raw material costs for drug manufacturing due to increased tariffs on Chinese imports, could worsen the situation. While large pharmaceutical companies like Pfizer are moving some manufacturing to the US, smaller generic producers may struggle. “Manufacturing in India is at least three to four times cheaper than in the US,” said Sudarshan Jain of the Indian Pharmaceutical Association to the BBC.

IPA, which consists of India’s largest drug makers, has recommended zero duty on US drug exports so that India isn’t negatively impacted by reciprocal levies. Prime Minister Narendra Modi’s government recently added 36 life-saving drugs to the list of medicines fully exempted from a basic customs duty in the budget, and Trump immediately said that India was yielding to him.