Preparation of 200% tariff on generic medicines in America, crisis looms on India’s pharma exports.

New Delhi: US President Donald Trump has announced the imposition of heavy tariffs on generic medicines imported into America in a phased manner. According to the information, under this new policy, no duty will be imposed on generic medicines for the first two years, but after that there will be a sharp increase in the tariff. Trump says that the purpose of this decision is to promote drug manufacturing in America and strengthen the domestic pharmaceutical industry.

When will this scheme be implemented

On his social media platform ‘Truth Social’, Trump said that this plan will be implemented from August 1, 2026. Under this, there will be zero percent tariff on all generic medicines imported into America from August 2026 to 2028. After this, the tariff will be increased to 100 percent in the third year, while there is a plan to take it to 200 percent in the next phase.

On which medicines will this policy apply?

Trump said that punitive action can also be taken against companies that do not develop production units and necessary infrastructure in America within the stipulated time frame. He clarified that this policy will be applicable only to generic medicines, while there will be no change in the existing system related to patent, branded and innovative medicines.

How will India be affected?

This announcement is expected to have the biggest impact on India. India is called the ‘Pharmacy’ of the world and America is the largest market for Indian generic medicines. On the basis of volume, about 40 percent of generic medicines used in America come from India.

According to the report of ‘Global Trade Research Initiative’ (GTRI), India exported pharmaceutical drugs worth about $ 9.7 billion to America in the financial year 2024-25. This was about 38 percent of India’s total global pharma exports of $25.8 billion. However, the actual impact of this new policy is not clear at the moment. But let us tell you, in the trade agreement signed between India and America in February, it was agreed to resolve the issues related to generic drugs and pharmaceuticals through negotiations.

There may be an impact due to implementation of tariff

In fact, Indian companies are major suppliers of cheap generic medicines related to blood pressure, diabetes, cancer, depression, infectious diseases and mental health. According to reports, about 65 percent of prescriptions for contraceptive pills in the US in the year 2024 were filled with drugs manufactured by India’s leading pharmaceutical companies Glenmark Pharmaceuticals and Lupine. In such a situation, if the proposed tariff is implemented, it may affect the Indian pharmaceutical industry as well as the drug costs of American consumers.