- Not a single day passes uneventfully for the global community to witness one or the other shocking news headlines about Trump’s tariff war that has not only caused great destruction/tribulations but also affected economies in more than one way. By now, governments around the world have become more familiar with the increasingly petulant, maverick, and illogical ways of Trump, who seems convinced that making America great again requires piling on tariff misery on the world. Some countries fell in line with the bullying Trump for lack of the option to take on the might of the superpower. However, some countries, like China and India, have stood firm not only in standing up to the bully but also have steadfastly refused to play ball.
PC: HDFC Sky
- Coming close on the heels of a 50% tariff on the Indian products, Trump’s latest announcement of a tariff on pharma must be considered as a clear-cut message for the Indian Union Government to diversify markets to ensure we aren’t too affected by the move. Of course, it isn’t clear whether Trump’s 100% tariff on imported branded or patented drugs will affect India, but markets turned cautious last week. As if on cue, pharma stocks fell between 1% and 5%. Notably, the tariff isn’t entirely unexpected – Trump has been talking about imposing it since April. In July, he threatened to tax imported pharmaceuticals at 200%. In August, he said the tariff could go up to 250%. What stumped the market was the timing. You expect the unexpected from Trump.
PC: The Hindu
- Remember, Trump had earlier hinted at starting with a small tariff and peaking in 12 to 18 months. The impact on India will depend on how branded is interpreted. The US is India’s biggest pharma market, buying roughly $10bn worth of drugs last year. But these are largely low-cost generics, including drugs for cardiovascular and neurological disorders. Experts believe these off-patent formulations – even if shipped under a brand name – may be exempt from the new tariff. However, clarity on this point will emerge only after the US issues enforcement rules. For Trump, making the US aatmanirbhar in medicines has been a priority since his first term. According to a White House release, the US makes 40% of its finished drugs, but the share of locally made APIs is just 10%.
PC: Business Inspection BD
- Also, this explains the exemption offered to pharma firms setting up plants in the US. But the abruptness of Trump’s decisions, like with H-1B visas last week, and the penal tariff on India in July, is unsettling. As reported, countries like Ireland, Switzerland, and Germany, which supply high-value branded and patented drugs, will clearly bear the brunt of his latest tariff. But if branded generics are also taxed, almost 40% of India’s pharma exports will be at risk. Even if Indian generics are spared for now, Trump’s sword will hang over them. What should the Indian think tank undertake on a war footing to preempt the potential fallout of the move? It’s a no-brainer; the search for new markets should begin immediately.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://kanigas.com/the-tariff-saga-of-trump-continues-unabated/&media=https://kanigas.com/wp-content/uploads/2025/10/119927504.jpg&description=President Trump's escalating tariff war, including a recent 100% tariff on imported pharmaceuticals and 50% on Indian products, has created global economic disruption and uncertainty, particularly affecting countries like India whose pharmaceutical sector exports roughly $10 billion worth of drugs annually to the US market. India must urgently diversify its export markets to reduce dependence on the US, as the tariffs threaten up to 40% of Indian pharma exports if branded generics are included, though the actual impact depends on how "branded" drugs are defined in the forthcoming enforcement rules.){kind=link}