Categories: BusinessHealthTopworld

How Trump’s Tariffs on India Could Backfire on the US Healthcare System

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

Also Read: Jairam Ramesh Alleges Modi-Trump Nexus in Starlink Deal: ‘Who Controls Connectivity in India?’

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

Mahendra Mohan