Donald Trump Announces Generic Drug Tariff Plan | Big Blow to India's Pharma Exports? | N18G

[00:00:00]This morning US President Donald Trump announced steep tariffs on imported generic [music] medicines from August 2020 and asserting that the move was aimed at onshoring the manufacturing of such pharmaceutical products. Donald Trump said effective August 1st, 2026 all generic drugs being brought into the United States will continue to have a tariff of 0% for a 2-year period of time after which the tariff will be raised to 100%. So 0% in 2026 to 100% 2028 for 1-year period of time and 200% thereafter. The move could affect India, which remembers the largest export of generic drugs to the United States.

[00:00:38]India is often called the pharmacy of the world as it supplies generic medicines to countries across the globe.

[00:00:45]So that's the big announcement that's coming from US President Donald Trump. I do want to go across to Pallavi Ghosh who joins us with more details. Pallavi, the tariff conversation unending. There is something or the other that the US President keeps throwing at the world.

[00:00:58]What does this one announcement mean for India though?

[00:01:01]>> But this is not such a bad news actually, [laughter] Christine. 50% of the farmer products in America are actually imported in from India and 38% of our exports are actually and I'm talking about farmer exports are actually going to America. So this is good news for us. It also sets the stage I would say for you know, our Indo-US trade deal which hopefully the first leg of it is going to be finalized and announced this week. But farmer has been an area of concern. It's been a blow hot, blow cold Donald Trump earlier where he has been talking about imposing 100% tariff. And that would have been a big hit as far as a farmer industry is concerned. We have a huge competition actually coming from Chinese. But Chinese in terms of quantity, in terms of quality, India is much, much and a far ahead, which is why Americans cannot do without Indian drugs. And that perhaps explains this decision and announcement by the American President.

[00:01:55]>> Thank you for that, Pallavi.

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