US Tariffs on Indian Pharmaceuticals Threaten American Healthcare
The imposition of a 25% tariff on Indian goods including essential drugs is set to increase healthcare costs in the US. With India supplying nearly half of the generic drugs in the US, finding alternative sources poses a challenge, risking drug shortages and escalated prices.
- Country:
- India
The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has voiced its concerns over President Donald Trump's decision to impose a 25% tariff on all Indian imports, including essential pharmaceuticals, starting August 1. This move is poised to increase healthcare costs in the US, impacting consumers significantly.
The US healthcare system is heavily dependent on India for supplying Active Pharmaceutical Ingredients (APIs) and low-cost generic drugs. Finding alternate sources with similar scalability, quality, and affordability is expected to be a significant challenge, said Pharmexcil Chairman Namit Joshi in a statement.
The council is urging policymakers to recognize the strategic role of Indian pharmaceutical companies in ensuring access to affordable medicines. Efforts to shift drug production within the US or to other countries may take years, threatening drug availability and affordability in the near term.
(With inputs from agencies.)
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