Daijiworld Media Network – Washington

Washington, Oct 10: The Donald Trump administration has decided to halt plans to impose tariffs on generic drugs from foreign countries, offering relief to Indian pharmaceutical companies and US consumers, according to a report by The Washington Post.

The decision comes after months of debate over whether to tax the majority of medications prescribed in the US. While the move is not final and could change in the coming weeks, it is a significant reprieve for Indian drugmakers, who supply the largest share of generic prescriptions in the US.

According to IQVIA, India provides 47 per cent of all generic prescriptions filled in US pharmacies. Earlier, President Trump had announced a 100 per cent tariff on branded drugs starting October 1, targeting multinational pharmaceutical giants such as Pfizer and Novo Nordisk, but excluded generic drugs from the measure.

The Washington Post reported that Trump postponed a decision on tariffs for generics to give his administration more time to negotiate with pharmaceutical companies. Members of the Domestic Policy Council reportedly warned that applying tariffs on generic drugs could lead to price hikes, drug shortages, and might not be effective since generics are cheap to produce in countries like India, making US production less profitable even with high tariffs.

Good news for Indian pharma:

The US accounts for over a third of India’s pharmaceutical exports, mainly consisting of affordable generic medications. Indian companies export approximately $20 billion worth of generics annually, helping keep medication costs within reach for US consumers. These drugs provide cost-effective alternatives for treating conditions ranging from diabetes to cancer, ensuring wider access to essential medicines.

The move is widely welcomed by Indian pharma companies and health advocates in the US, who had expressed concerns that tariffs on generics could disrupt supply chains and raise healthcare costs.