New Delhi [India]: The Indian Pharmaceutical Alliance (IPA) has welcomed the exclusion of pharmaceutical products from the recently announced US tariffs, emphasizing its significance in strengthening India-US trade relations under the Mission 500 initiative.
India’s Role in Global Healthcare
IPA Secretary General Sudarshan Jain stated that India plays a critical role in the global pharmaceutical supply chain, ensuring a steady flow of affordable, life-saving medicines to the United States and beyond.
“The decision underscores the importance of cost-effective generic medicines in public health, economic stability, and national security. India’s pharmaceutical sector remains a pillar of the India-US economic partnership,” Jain said.
The Mission 500 initiative aims to double bilateral trade between India and the US to $500 billion, with pharmaceuticals identified as a key growth sector.
Trump’s Tariff Policy and India’s Position
While pharmaceuticals remain exempt, India faces a 26% tariff on other exports under US President Donald Trump’s latest trade policy.
Trump justified the move by claiming India imposes higher tariffs on US goods.
“India is very, very tough. Prime Minister Modi is a great friend of mine, but they charge us 52%, and we charge them almost nothing,” Trump remarked at the Make America Wealthy Again event.
Global Impact of New US Tariffs
Under the new tariff policy, several countries face higher duties on exports to the US:
- China – 34%
- European Union – 20%
- Vietnam – 46%
- Taiwan – 32%
- Japan – 24%
- India – 26%
- Bangladesh – 37%
- Pakistan – 29%
- Sri Lanka – 44%
- Israel – 17%
- United Kingdom – 10%
India-US Trade: Next Steps
Despite tariffs on other goods, India and the US continue negotiations on a possible trade agreement covering agriculture, automobiles, and pharmaceuticals.
- What’s Next?
- Will India retaliate with counter-tariffs?
- How will India’s pharma sector leverage this exemption to boost exports?
- Can trade talks ease tensions between New Delhi and Washington?