President Donald Trump’s threat to impose tariffs of up to 200% on imported pharmaceuticals could deal a heavy blow to India, the world’s largest supplier of generic medicines.
India accounts for 40% of generics consumed in the United States and operates the most USFDA-approved plants outside America.
The U.S. imported $12.3 billion worth of Indian drugs in 2024, leaving a $11.7 billion trade deficit, and imports surged to $8.9 billion in the first half of 2025 alone.
Indian drugmakers, already competing on thin margins, may be forced out of the U.S. market if duties take effect, raising the risk of shortages and higher prices.
A tariff of that magnitude would destabilize a key supplier and disrupt global medicine supply chains.