New Delhi: The Indian pharmaceutical sector has been excluded from the United States’ latest tariff hike, offering critical relief amid escalating trade tensions between the two nations.
The exemption, confirmed by Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, reflects Washington’s recognition of the sector’s role in supplying affordable generic medicines.
The move follows a recent Executive Order by US President Donald Trump, which announced an additional 25 per cent tariff on Indian imports in response to India’s continued purchase of oil from Russia.
The new tariffs will raise the total duty burden on Indian goods to 50 per cent, beginning August 7, with a second phase of levies kicking in 21 days later.
However, the pharmaceutical industry has been spared from the immediate impact.
“The Executive Order excludes the pharma sector from the first round of tariffs. While it remains under review as part of the Section 232 investigation, the US has acknowledged the importance of generics for affordable healthcare,” Jain said. “These medicines run on thin margins and are essential for patient care in the US.”
He also highlighted the strategic dimension of the India-US pharma relationship. “The partnership between our countries is vital for securing global API (Active Pharmaceutical Ingredient) supply chains and strengthening healthcare resilience,” he added.
The Executive Order cited national security and foreign policy considerations as the basis for the tariff escalation. The White House described India’s ongoing oil trade with Russia as an “unusual and extraordinary threat” to US interests.
India has strongly objected to the US action. In a statement, the Ministry of External Affairs (MEA) condemned the tariffs as “unfair, unjustified and unreasonable.”
“Our energy imports are driven by market dynamics and aimed at ensuring affordable and stable energy access for 1.4 billion people,” the MEA said. “It is extremely unfortunate that the US has chosen to penalise India for decisions made in our national interest—decisions that many other countries are also pursuing.”
The MEA reiterated India’s commitment to safeguarding its economic and strategic interests. “We will take all necessary steps to protect our national interests,” the statement concluded.
While most Indian exports now face increased duties, the temporary relief for the pharmaceutical sector could help preserve a key pillar of the India-US trade relationship—one built on healthcare cooperation and supply chain integration.