Trump’s tariff threat puts Indian pharma, US contraceptive supplies at risk

Approximately 65% of all birth control pill prescriptions in the US last year were manufactured by juist two India-based companies, Glenmark Pharmaceuticals Ltd. and Lupin Ltd., according to a Bloomberg News analysis of data provided by health care intelligence firm Symphony Health.

- Bloomberg

While dependence on Indian imports and a narrow supply base is particularly acute for the birth control pills, some other drug categories are not far behind. Treatments for hypertension and depression are second only to birth control medication, with more than 50% of US prescriptions serviced by Indian generic drugmakers, the data shows.

Often dubbed the “pharmacy of the world,” India is the biggest supplier globally of cheap, non-patented medicines. The US is the country’s largest export market for drugs and accounted for exports worth about $9 billion in 2024, as per UN Comtrade Database of global trade statistics.

The data points to potential inflationary and supply chain shocks to the US health care system if Trump follows through on maximum punitive tariffs for pharmaceutical imports.

It also underscores the financial vulnerability of hundreds of Indian generic drugmakers that rely on US exports and tend to operate on wafer-thin margins due to intense price competition.

“We'll be putting an initially small tariffon pharmaceuticals, but in one year —one anda half years, maximum — it's going to go to 150% and then it’s going to go to 250% because we want pharmaceuticals made in our country,” Trump told CNBC in early August. The Trump administration has so far not levied any tariffs on drugs.