US Tariffs on Indian Goods Threaten Affordable Healthcare
US healthcare costs are expected to rise due to the implementation of a 25% tariff plus an unspecified penalty on Indian goods, affecting the pharmaceutical and medical device industries. This may lead to increased drug costs and impact research and development in India.
- Country:
- India
Healthcare costs in the United States are projected to escalate following President Donald Trump's announcement of imposing a 25 percent tariff on Indian goods, coupled with an unspecified penalty linked to the purchase of Russian crude oil and military equipment. This move has sparked concerns among industry experts about its potential impacts on both US healthcare expenditure and Indian pharmaceutical companies.
OmniActive Health Technologies Executive Chairman, Sanjaya Mariwala, emphasized that these tariffs could disrupt the flow of affordable medicines into the US, leading to escalated drug prices and further straining the healthcare budget. He also noted potential stagnation in Indian R&D and slowed innovation processes.
Despite the challenges, a gap of more than 15-20 percent between tariffs on Chinese and Indian goods might offer positive prospects for Indian medical device exports to the US. However, experts stress the need for vigilance and preparation for possible future sector-specific tariffs, as both countries aim to expedite bilateral trade discussions to establish a stable trade agreement.
(With inputs from agencies.)
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