US President Donald Trump has announced that imported generic medicines will continue to have 0% tariffs for the next two years. However, the US plans to impose a 100% tariff in 2028 and increase it to 200% from 2029. Trump said the decision was taken to encourage pharmaceutical companies to move their drug manufacturing operations to the United States.The move could have a major impact on India, as around 40% of the generic medicines used in the US are supplied by Indian pharmaceutical companies.India is known as the “pharmacy of the world” because it supplies affordable generic medicines to many countries. According to a report by the Global Trade Research Initiative (GTRI), India exported pharmaceutical products worth around $9.7 billion to the US in the financial year 2024-25. This accounted for nearly 38% of India’s total global pharmaceutical exports, which were valued at around $25.8 billion.The proposed tariffs could create challenges for Indian drug manufacturers and may also affect the cost and supply of generic medicines in the US.
