India Will Be a Bitter Pill to Swallow

It followed Trump’s announcement that he would impose tariffs – which are government taxes on foreign imports – on India by 2 April, in retaliation to India’s tariffs on American goods.

Goyal wants to stave off tax increases on India’s critical export industries like medicinal drugs.

Nearly half of all medicines taken in the US come from India alone. Generic drugs – which are cheaper versions of brand-name medications – imported from countries like India make up nine out of 10 prescriptions in the US.

This saves Washington billions in healthcare costs. In 2022 alone, the savings from Indian generics amounted to a staggering $219bn (£169bn), according to a study by consulting firm IQVIA.

Without a trade deal, Trump’s tariffs could make some Indian generics unviable, forcing companies to exit part of the market and exacerbating existing drug shortages, experts say.

Tariffs could “worsen the demand-supply imbalances” and the uninsured and poor will be left counting the costs, says Dr Melissa Barber, a drug costing expert from Yale University.

The effects Digital Agency Singapore could be felt across people suffering from a range of health conditions.

Over 60% of prescriptions for hypertension and mental health ailments in the US were filled with Indian-made drugs, according to the IQVIA study funded by the Indian Pharmaceutical Alliance (IPA).

Sertraline, the most prescribed antidepressant in the US, is a prominent example of how dependent Americans are on Indian supplies for essential drugs.

Many of them cost half as much as for those from non-Indian companies.

“We are worried about this,” says Peter Maybarduk, a lawyer at Public Citizens, a consumer advocacy group fighting for access to medicines. One in four American patients already fail to take medicines due to their costs, he adds.

Trump is already reportedly facing pressure from US hospitals and generic drugmakers because of his tariffs on Chinese imports.