After imposing punitive tariffs of 50% on India, which took effect on August 27, US President Donald Trump recently announced 100% tariffs on imported branded or patented pharmaceutical products, coming into effect on October 1. Now, Bhaskar Chakravorti, Dean of global Business at The Fletcher School of Law and Diplomacy at Tufts University, stated that U.S. President Donald Trump’s decision to impose 100% tariffs on pharmaceuticals will not affect India.
How will Trump’s pharma tariffs won’t affect India?
Chakravorti warned that the move could be a precursor to future action on Indian generics. He says, “This move to put tariffs on patented pharmaceuticals is not something that is going to create impact on Indian manufacturers as much, but it’s coming awfully close. I wouldn’t rule out tariffs on generic pharmaceuticals down the road”.
Trump’s Economic policies already harming US economy
Furthermore, Chakravorti suggested India consider decreasing Russian oil imports as a signal to Washington. He said that would likely be a significant move that India could make to capture Trump’s attention. India can still argue this is not economically feasible but it helps Trump’s claim of campaigning for peace. He noted that Trump’s current economic policies are already harming the US economy. He highlighted that consumer demand will be hit. Several countries have no substitute for the US market. You can put together 50 markets and it still doesn’t add up to cover the deficit.