Big Blow to Indian Pharma from Trump’s Tariff, Report Warns of Trouble for U.S. Too

New Delhi (The Uttam Hindu): US President Donald Trump's announcement of imposing 50 percent tariff on India will have a deep impact not only on India but also on America. Especially the pharmaceutical trade may be most affected by this move.

According to the latest report of State Bank of India (SBI), about 40 percent of India's total drug exports go to the US market. If a 50 percent tariff is imposed on Indian drug exports as well, then the income of pharmaceutical companies is likely to decline by 5 to 10 percent in the next financial year. Many Indian pharma companies earn 40 to 50 percent of their total revenue from the US market.

According to the data, about 40 percent of India's drug exports were to the US in FY 2025, while India's share in total US drug imports was 6 percent in FY 2024. Experts believe that a 50 percent tariff will reduce the competitiveness of Indian products and put pressure on profit margins, as companies will not be able to pass on the entire burden of increased costs to consumers.