Why Washington’s Trade War Might Lead to Drug Shortages & Rising Healthcare Costs
March 14, 2025: 🔹 Key Highlights:
Also Read: Trump Threatens 200% Tariff on European Wines and Champagne Amid Trade War
- Trump’s new tariffs on Indian pharmaceuticals could severely disrupt the US healthcare system by raising drug prices and causing supply shortages.
- India supplies nearly 50% of the US’s generic drugs, contributing $219 billion in healthcare savings in 2022 alone.
- The Indian pharmaceutical industry warns that these tariffs could make exports to the US unviable, leading to manufacturing slowdowns.
- Experts fear the uninsured and low-income Americans will be hit hardest due to price hikes and supply chain disruptions.
- Commerce Minister Piyush Goyal’s visit to the US was aimed at negotiating a trade deal to avoid major economic fallout.
Also Read: Trump Slams India’s ‘Massive’ Tariffs: ‘You Can’t Even Sell Anything There’
🔺 Why Indian Pharmaceuticals Matter to the US
India plays a critical role in the global pharmaceutical supply chain, with its low-cost, high-quality generic drugs making healthcare affordable in the US.
📌 Fact Check:
- 90% of prescriptions in the US are for generic drugs.
- India is the largest supplier of generics to the US, keeping drug costs 40-60% lower than branded alternatives.
- US pharma imports from India total $8.5 billion annually.
🔻 How Trump’s Tariffs Will Hurt the US
1️⃣ Higher Drug Costs & Shortages:
- Tariffs could make some Indian generics financially unviable, causing shortages of essential medicines.
- US hospitals & pharmacies would struggle to replace lost supplies.
2️⃣ Impact on Uninsured & Low-Income Americans:
- Higher drug prices will disproportionately affect the uninsured and lower-income Americans, who rely on affordable generics.
3️⃣ US Pharma Industry Faces Rising Costs:
- 20% increase in raw material costs since 2017 due to tariffs on China has already raised drug prices.
- Any additional levies on India will further strain the US pharmaceutical industry.
🔺 India’s Response & Trade Talks
- Indian firms like Sun Pharma & Cipla warn they may pull back exports due to cost barriers.
- India may consider zero duty on US drug exports to avoid reciprocal levies.
- Trade negotiations underway:
- Former US trade official Mark Linscott predicts a partial trade agreement by fall 2025.
🔻 The Bigger Picture: A Lose-Lose Situation
✅ The US healthcare system is already struggling with rising costs.
✅ Tariffs could worsen affordability & accessibility of essential medicines.
✅ India risks losing its biggest export market, affecting millions of jobs.
📢 Will a last-minute trade deal save both economies from unnecessary hardship? The coming months will be crucial.
📌 Tags:
Trump tariffs India, US healthcare crisis, India pharma exports, drug shortages US, trade war impact, Piyush Goyal US visit, US-India trade deal, rising drug prices, generic drugs supply chain