US Tariffs on Branded Drugs: No Immediate Impact on Indian Generics
The US has announced 100% tariffs on imported branded pharmaceuticals from October 1, but Indian generics remain unaffected. Indian Pharmaceutical Alliance confirms that the new tariffs do not impact India's extensive supply of generic medicines to the US. The focus is on patented drugs, with minimal immediate impact on Indian exports.
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In a recent development, US President Donald Trump has declared a 100% tariff on imported branded and patented pharmaceuticals commencing October 1. This unprecedented move has raised concerns about its implications on global trade.
According to the Indian Pharmaceutical Alliance (IPA), the tariffs are directed toward branded or patented products and will not affect generic medicines. Sudarshan Jain, Secretary General of IPA, emphasized, "The executive order is specific to patented/branded products supplied to the US and excludes generics." Currently, India is responsible for supplying over 45% of generic drugs used in the United States.
Namit Joshi, Chairman of Pharmexcil, which derives a significant portion of its revenue from the US, reaffirmed the statement. "India remains a key player in the global supply of affordable, high-quality medicines to the US, particularly in the generics market," Joshi stated. Despite the tariffs, the immediate impact on Indian exports is expected to be minimal, considering that most Indian firms operate US manufacturing units. Meanwhile, Rajiv Nath of AiMeD clarified that medical devices, already taxed, are unaffected by the new tariffs.
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