Big relief for India! Trump spares pharma from harsh tariffs

In a big relief to India’s pharmaceutical industry, US President Donald Trump exempted pharmaceuticals, one of New Delhi's key export items to the US, from the new reciprocal tariffs rule on Thursday.

"Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States," the White House said in a factsheet.

The US market accounts for 30% of overall exports for India’s pharma sector.


The industry welcomed the decision, saying that it underscores the critical role of cost-effective, life-saving generic medicines in public health, economic stability, and national securiy.

“India and the U.S. share a strong and growing bilateral trade relationship, with a shared vision to double trade to $500 billion under the Mission 500 initiative. Pharmaceuticals remain a cornerstone of this partnership, as India plays a vital role in global and U.S. healthcare by ensuring a steady supply of affordable medicines,” said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA).

The White House highlighted that India imposes its own “uniquely burdensome” and/or duplicative testing and certification requirements in sectors such as chemicals, telecom products, and medical devices that make it difficult or costly for American companies to sell their products in India.

“If these barriers were removed, it is estimated that U.S. exports would increase by at least $5.3 billion annually,” the factsheet said.