Trump’s new attack amid tension with Iran! Now India will be affected, another economic war has started

highlights

• trump tariff policy Announcement of imposing up to 100% tariff on some patent medicines and their ingredients.
• The US government aims to force pharmaceutical companies to produce in the US.
• After the new policy, uneasiness increased among global pharma companies and investors.
• There was a decline in the shares of many big pharma companies in the Indian stock market.
• The Trump administration also tightened the import rules for steel, aluminum and copper.

Trump tariff policy creates stir in global market

The world’s politics and economy are going through a period of instability these days. On one hand, tension seems to be increasing between America and Iran, while on the other hand, US President Donald Trump has taken a step on the economic front which has surprised the global business world.

In fact, trump tariff policy Under this, the US has proposed to impose tariffs of up to 100% on some imported patent medicines and their essential raw materials. The purpose of this decision is to put pressure on foreign pharmaceutical companies to set up their production centers in America and American consumers can get medicines at cheaper prices.

Experts believe that trump tariff policy Not only is it an effort to strengthen America’s domestic economy, but it is also a big signal to the global pharma industry that America can take drastic steps to protect its market in the future.

What is the real purpose of Trump’s tariff policy?

Strategy to increase production in America

The US administration says that trump tariff policy The main objective of is to increase drug production within the US. For the last several years, America has been importing large quantities of medicines and pharmaceutical materials from foreign countries.

According to government officials, the new trump tariff policy Under this, if companies promise to set up production units in the US or join the “Most Favored Nation” pricing program, they can get major relief on tariffs.

Limited time given to companies

New trump tariff policy After implementation, big pharma companies have been given 120 days to comply with the rules, while smaller companies have been given 180 days.

A senior US administration official said companies had already been informed that the government could take tough steps to give priority to domestic production.

Which companies can get exemption?

Although trump tariff policy It is considered quite strict, but some important relaxations have also been given in it.

Relief to those transferring production to America

Companies that agree to shift their production centers to the US may get major relief from tariffs. In such cases the tariff can be reduced by about 20 percent.

Partial exemption for some countries

New trump tariff policy Under the U.S., relatively low tariffs can be imposed on companies based in countries such as the European Union, Japan, South Korea and Switzerland. Companies from these countries may have to pay about 15 percent tariff.

Similarly, a separate tariff system will be implemented for British companies also.

Fall in shares of pharma companies

impact on indian market

New trump tariff policy After the news came out, there was a decline in the shares of pharma companies in the Indian stock market.

Sun Pharma shares, in particular, fell by about 4 to 5 per cent and were near 52-week low.

Apart from this, shares of many other big companies also declined, which include:

• biocon
• Lupine
• Divi’s Laboratories
• Dr Reddy’s Laboratories
• Cipla
• Zydus Lifesciences

Due to these falls, the Nifty Pharma index also slipped by about 2.5 percent.

Analysts say that trump tariff policy Due to this, uncertainty among investors has increased, due to which there was pressure in the shares of pharma sector.

How big is the threat to India?

Limited effects due to generic drugs

Although at first glance trump tariff policy This may seem like a big challenge for India, but experts say that its direct impact may be limited.

Most of the drugs exported from India to the US are generic drugs, which are relatively cheaper and usually fall in a different category than patent drugs.

New trump tariff policy It is mainly targeting branded and patented medicines, hence its impact on Indian generic pharmaceutical companies is expected to be less.

Potential pressure on exports

Yet experts believe that if trump tariff policy If it remains in force for a long time, it may increase instability in the global pharma trade and Indian exporters may have to adopt new strategies.

Strict action on metal import also

Apart from pharma sector trump tariff policy Under this, America has also changed the import rules of steel, aluminum and copper.

Trying to stop price manipulation

The US administration says that these steps have been taken to prevent alleged price manipulation by foreign exporters.

According to the new system, now 50 percent tariff on primary metal will be decided on the basis of the price purchased in America instead of the price declared by the exporter.

Domestic products also affected

Additionally, products with high metal content—such as home appliances or industrial goods—can also be subject to a tariff of up to 25 percent if their metal content exceeds the prescribed limit.

New signal for the global economy

Experts believe that trump tariff policy Not only an economic decision, but it is also a big message for the global trade system.

America has tried several times in the past to protect its industries by increasing import duties. But bringing the pharma sector under the ambit of tariff on such a large scale is being considered a new step.

If trump tariff policy If it remains in place for a long time, it could increase tensions in international trade relations and force many countries to rethink their trade strategies.

overall trump tariff policy This could prove to be a turning point for global trade and the pharma industry. While America is trying to increase domestic production and employment through this policy, on the other hand it may also increase instability and competition in the global market.

For countries like India, this situation can bring both challenges and opportunities. If Indian pharma companies make strategies according to the changing global business environment, they can also convert this crisis into an opportunity.