An American chill pill for India: Trump’s 100% pharma tariff won’t cover generic drugs
When Trump said ‘branded or patented’ drugs would face a 100% US tariff, he meant exactly that, according to a fresh report. Indian exporters of generics have little to worry about—at least for now.
America’s new 100% pharma tariff, going by a recent post online by US President Donald Trump, was aimed at “branded or patented" pharmaceutical products, barring those for which plants were being built in the US. Indian exporters of generic drugs have since wondered if their shipments could face such a barrier too.
A Wall Street Journal report, citing White House and commerce department spokespersons, suggests they need not worry about policy creep. At least not at this stage. A tariff on generic imports isn’t under consideration, says the report, though a final decision is yet to be taken. Pharma stocks in India climbed in response.
Some of this seems to reflect relief that the term “branded" would not be interpreted to include off-patent generic formulations that sell in India under various names. Even on branded drugs, the US tariff has been delayed amid negotiations.
It is well known that the US healthcare system benefits from low-cost generics produced in India. Trump’s focus is on much higher priced patented drugs. What matters most in this field is intellectual property, acquiring which isn’t about factories but openness to talent from across the globe.
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