The Indian Pharmaceutical Alliance (IPA) on Thursday welcomed the exclusion of pharmaceuticals from the new import tariffs announced by US President Donald Trump, emphasizing the growing bilateral trade ties between India and the United States.
Sudarshan Jain, Secretary General of the IPA, expressed appreciation for the decision and highlighted the vital role that India plays in global healthcare, particularly in supplying affordable medicines to the US market. In a statement, Jain stated, “India and the US share a strong and growing bilateral trade relationship, with a shared vision to double trade to USD 500 billion under the Mission 500 initiative. Pharmaceuticals remain a cornerstone of this partnership, as India plays a vital role in global and US healthcare by ensuring a steady supply of affordable medicines.”
Jain also underscored the significance of the tariff exemption, noting that it highlights the importance of cost-effective, life-saving generic medicines in public health, economic stability, and national security. He reaffirmed the Indian pharmaceutical industry’s commitment to bolstering supply chain resilience and ensuring continued access to affordable medicines, which aligns with the shared priorities of both nations.
Trump’s tariff announcement, made during a speech at the Make America Wealthy Again Event on Wednesday, included new import tariffs on countries across the globe, with India facing a 27% tariff. During his address, Trump referred to Prime Minister Narendra Modi as a “great friend” but criticized India’s tariff policies, saying, “India charges the US 52 percent, and we charge them almost nothing.” He further elaborated on the discrepancy in tariff rates, adding, “The United States charges other countries only a 2.4 percent tariff on motorcycles. Meanwhile, Thailand and others are charging much higher prices like 60 percent, India charges 70 percent, Vietnam charges 75 percent and others are even higher than that.”
Trump also mentioned that a 25% tariff would be imposed on all foreign-made automobiles. The US President’s remarks come as part of a broader effort to address what he views as unfair trade practices, particularly in key sectors such as agriculture, automobiles, and pharmaceuticals.
Earlier reports indicated that any potential trade agreement between India and the US might focus on these sectors, given their political and economic sensitivity for India, especially due to high tariff rates.
In addition to India’s 27% tariff, the import tariffs imposed by Trump on other major trading partners include China at 34%, the European Union at 20%, Vietnam at 46%, Taiwan at 32%, Japan at 24%, the United Kingdom at 10%, Bangladesh at 37%, Pakistan at 29%, Sri Lanka at 44%, and Israel at 17%.
(With IANS inputs)
