The Pharmaceuticals Export Promotion Council of India (Pharmexcil) warned that President Donald Trump’s new 25% tariff on all Indian goods, effective August 1, will sharply increase the cost of essential drugs in the United States, hitting consumers and healthcare systems hard. Announced on Wednesday, the tariff, coupled with an unspecified penalty for India’s purchases of Russian crude oil and military equipment, targets a key supplier of affordable medicines to the U.S.

Pharmexcil Chairman Namit Joshi emphasized India’s critical role in the global pharmaceutical supply chain, supplying nearly 47% of the U.S.’s generic drug needs, including life-saving oncology drugs, antibiotics, and treatments for chronic diseases. “India ensures affordability and availability of high-quality medicines,” Joshi said. “These tariffs will disrupt this supply chain, leading to shortages and escalating prices that harm American patients.”

The U.S. relies heavily on India for Active Pharmaceutical Ingredients (APIs) and low-cost generics, and finding alternative sources matching India’s scale, quality, and affordability poses a significant challenge. Joshi noted that shifting manufacturing to other countries or building domestic U.S. capacity could take 3-5 years, leaving the healthcare system vulnerable to prolonged disruptions. “The immediate impact will be higher drug costs, but the long-term consequences could be far worse,” he warned.

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Pharmexcil vowed to advocate for Indian pharmaceutical exporters and global healthcare access, engaging policymakers to highlight the critical role of Indian generics. As the tariff looms, the ripple effects threaten to strain U.S. healthcare budgets and limit access to vital medications, underscoring the delicate balance of global trade and public health.

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