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Pharma sector braces for tariff risks as US steps up trade actions: Report

Pharma sector braces for tariff risks as US steps up trade actions: Report

India’s pharmaceutical industry may face fresh tariff challenges as the United States intensifies trade actions, according to a recent report. The development has raised concerns among Indian drugmakers, who already account for a significant share of the generic medicines supplied to the US market.

The report highlights that while India remains a crucial supplier of cost-effective generics, the growing trade protectionism in the US could impact market access. The US has increasingly turned to tariffs and stricter trade measures to protect domestic industries, a trend that could extend to pharmaceuticals.

Industry experts caution that any tariff-related actions could not only affect India’s USD 30 billion-plus pharma exports but also disrupt global healthcare supply chains that depend heavily on affordable Indian generics. The US currently accounts for nearly one-third of India’s pharma exports.

Analysts also noted that trade frictions could complicate regulatory collaborations and delay approvals. At a time when Indian pharma companies are investing heavily in compliance, R&D, and manufacturing capacity, additional tariff barriers may erode competitiveness.

The report urges policymakers to strengthen dialogue with US authorities, diversify export markets, and build resilience in global supply chains to safeguard India’s pharma sector from the fallout of escalating trade tensions.

More news about: global pharma | Published by Darshana | August - 20 - 2025 | 209

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