NIN Web Desk : Dr subhrojyoti chattopadhyay; Donald Trump recently announced the imposition of mutual tariffs while addressing a joint session of the US Congress. That is, the country that imposes tariffs on American products, America will impose tariffs at the same rate. From April 2, America will follow the policy of ‘reciprocal tariffs’. What will be the loss of the Indian economy due to the policy of US President Donald Trump? In this discussion, trade experts have brought forward an important point. India will not be the only one under pressure due to Donald Trump’s trade policy, America will also have to gain momentum.
According to Trump’s announcement, reciprocal tariffs may be imposed on India from next month. This reciprocal tariff will affect not only India but also America. The impact on the US health system in particular could be massive. In fact, a large number of generic drugs sold in America remain in India. Most of the common middle class or lower class people in America depend heavily on these drugs. If retaliatory tariffs are imposed, the companies that make these drugs will be forced to leave the US market. This will have a direct impact on poor people in America.
According to reports, on average 90 percent of the drugs that doctors prescribe in America are imported from countries like India. America makes billions of dollars every year from these cheap drugs. According to an IQVIA report, in 2022, the US saved $219 billion from Indian generic drugs. Now, if these Indian companies withdraw from the US market due to tariffs, the US may face billions of dollars in losses every year. According to this report, 60% of the drugs prescribed specifically for mental health in the US are manufactured in India. Not that the US will be the only one affected by Donald Trump’s reciprocating tariff policies. Indian pharma companies may also suffer greatly as a result. According to the GTRI report,
India exports about $12.7 billion worth of drugs to the US every year. The biggest thing is that till now there was almost no tax on these medicines. But, after imposition of reciprocal duties, these companies may face a duty of around 11% on their exports, thereby increasing their costs as well. If these costs are not covered, they will have to withdraw from the US market. As a result, they can also face huge losses.
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