Good news for India from the US, Trump administration reverses tariff decision, providing significant relief

US President Donald Trump's tariff policy had shaken the economies of countries around the world. Countries like China, Europe, and India were directly affected by the US tariff policy. However, now there is news of relief for India. The Trump administration has postponed plans to impose tariffs on generic drugs.

This decision brings significant relief to the Indian pharmaceutical industry, as India exports a large portion of the low-cost medicines used in the US. If this tariff were implemented, Indian medicines would become more expensive in the US market, potentially reducing demand for them and forcing ordinary Americans to pay higher prices for their medicines.

American consumers receive significant relief
According to a report by medical data analytics company IQVIA, approximately 47% of generic medicines used in the US come from India. Because of this, India is often referred to as the "Pharmacy of the World." Indian pharmaceutical companies export crucial medicines for diabetes, high blood pressure, cholesterol, and antibiotics. These medicines are priced significantly lower than those produced locally in the United States, providing significant relief to American consumers.

Why did the Trump administration change its decision?

According to a report in The Wall Street Journal, the Trump administration had initially investigated the possibility of imposing tariffs on generic drugs and their raw materials. However, after warnings from experts, the Commerce Department recommended limiting this plan. They believed that imposing tariffs on these drugs would increase drug prices in the United States and could lead to supply shortages.

Two opinions emerged within the administration: one group wanted to bring drug production back to the United States, while the other group was concerned that such a move would impose an economic burden on the general public. Ultimately, the latter group prevailed, and the tariff proposal was shelved.

Global Impact and India's Role
Donald Trump's "tariff war policy" had already escalated trade tensions between China and the United States. In response to the tariffs imposed on China, China stopped purchasing American agricultural products, causing significant losses to American farmers. Experts believe that if tariffs were imposed on Indian medicines, it would have a profound impact on the US healthcare system.