Terming India as a very high tariff nation, US President Donald Trump has said that reciprocal tariffs on countries that impose levies on American goods will kick in on April 2
New Delhi: Enhanced tariffs on pharma imports in the US can severely impact Indian drug manufacturers as it would lead to higher production costs, making shipments less competitive against products from other countries.
Smaller drug firms operating on thin margins can face severe pressure potentially forcing consolidation or closure.
The automobile sector, on the other hand, is expected to have a very minimal impact owing to the US being a small export market.
Terming India as a very high tariff nation, US President Donald Trump has said that reciprocal tariffs on countries that impose levies on American goods will kick in on April 2.
India currently levies around 10 percent import duty on American drugs, while the US doesn’t charge any import duty on Indian drugs.
Shardul Amarchand Mangaldas & Co Partner Arvind Sharma said as of recent history, the US has been a net importer of pharmaceutical products to meet its domestic demand.
“In the event the US decides to impose substantial tariffs on pharmaceutical imports from India, the impact could send noticeable ripples through the Indian pharma sector and simultaneously disrupt its own domestic consumption,” he noted.