COULD DONALD TRUMP'S TRADE MOVES HIT INDIA'S PHARMA EXPORTS NEXT?

If tariffs hit, medicines could cost more in the U.S., and India's drug industry could take a hit. For now, it's all talk, but India's pushing for trade deals and new markets to stay strong.

- By Nehal Gautam

U.S. President Donald Trump's recent trade decisions are making waves, and India's pharmaceutical industry is getting nervous. His August 11, 2025, deal lets Nvidia and AMD sell Al chips to China, with the U.S. government taking a 15% cut of the profits. Now, with a 50% tariff on all Indian goods starting August 28, 2025, people are worried that medicines could be next. Trump has talked about slapping tariffs as high as 250% on drugs before, though nothing's confirmed yet. India's affordable medicines are a lifeline for millions in the U.S., and any new tariffs could make them pricier for patients and tougher for India's drugmakers.

Why India’s Medicines are at Risk

India makes a huge chunk of the generic drugs Americans use, 47% of their prescriptions, saving $408 billion in 2022, according to IQVIA. These generics, worth $9.8 billion in exports to the U.S. last year, are a big deal for companies like Sun Pharma and Dr. Reddy's. The U.S. is their biggest customer, but Trump wants to shrink the $45.7 billion trade gap with India from 2024. His new chip deal shows he's ready to put fees on big industries, and medicines could be next.