Dubai [UAE]: Habib Khorakiwala, Chairman of pharmaceutical company Wockhardt, has cautioned that any potential US tariffs on pharmaceutical imports would ultimately harm American interests.
Speaking from Dubai on Friday, Khorakiwala stressed that imposing such tariffs would be “counterproductive for the American people.” His comments come amid the US government’s new tariff strategy, which includes a 10% base tariff on all imported goods. While reciprocal tariffs on many countries have been temporarily suspended for 90 days, China remains an exception.
“India supplies 40 per cent of prescription drugs to the United States,” Khorakiwala pointed out, highlighting the critical role India plays in the American pharmaceutical supply chain.
“And over the years, we (India) made so much contribution in making products available at a reasonable price (in the US),” he said.
Khorakiwala warned that the long regulatory timelines for drug approvals from the US Food and Drug Administration (USFDA) make it difficult for the US to quickly find alternatives if tariffs are imposed on Indian pharmaceuticals.
“The whole approach would be counterproductive for the American people, mainly because when it is not easier to switch, for medicine, because the approval process by USFDA takes several years,” he noted.
His remarks follow an announcement from former US President Donald Trump earlier this week, stating that tariffs on the pharmaceutical sector are on the horizon—a sector that had previously been exempt.
Khorakiwala also pointed out the economic inefficiencies of moving pharmaceutical production to the US.
“And the cost advantage which is available (at present), would be completely reduced. India’s success over the years, last 20-25 years in the US is mainly because we could meet the US requirement with the quality they want and at the price which is globally competitive, and that is our Indian strength,” he explained.
He emphasized that not only is manufacturing in the US significantly more expensive, but research and development costs are even more so.
“There are two aspects of costs. One is the manufacturing cost. It is about 3 to 4 times more. Second, more important in our industry is the research cost, and that is 10 to 20 times more,” he added.
Khorakiwala concluded that if tariffs are imposed, much of the additional burden would likely fall on the American healthcare system and consumers.