Pharma firms hope for 'full exemption' from US levy

With the US government giving a 90-day breather on reciprocal tariffs, the domestic pharma sector is expecting complete exemption from the levy in the near future along the lines of a range of electronic products.

- MANU KAUSHIK

"Once the US got to know that it cannot impose stiff tariffs on electronic products due to high import dependence, it quickly exempted those items. It's only a matter of time before the US government realizes that its dependence on imported medicines is significant, and...fully exempts the pharma sector from tariffs," the head of a leading pharma association said on condition of anonymity.

Experts said generics constitute nearly 80% of the US pharma market and these are primarily imported from India—47% market share in US generics sales.