00:00President Donald Trump has said that genetic drugs will face a 100% import duty from August
00:062028 unless they move production to the US. The move is poised to disrupt trade and among the
00:13worst hit could be India. India is the biggest exporter of genetic medicines to the US with
00:19more than a third coming from manufacturers in the country. Oral contraceptives and drugs used
00:25to treat hypertension and depression are among the medicines that risk being impacted. The
00:31US is also India's biggest market which threatens business for hundreds of Indian drug makers.
00:37The tariff is aimed at boosting pharmaceutical production in the US but drug manufacturers
00:43already operate on thin margins. And the 100% import duty could mean shortages and higher
00:50prices for generic drugs, which are meant to be low cost. It is not immediately clear
00:56how much of the new tariff Indian companies will face. A trade pact struck by the two countries
01:01in February said that India would receive a negotiated outcome on generic drugs. For now, companies
01:08and industry lobbies are assessing their next moves. Some say setting up plans is expensive
01:13and could take much longer than Trump's two-year timeline to go live. Others like trade groups
01:18say Indian firms will have limited options and will look to pass on these costs to US customers.
Comments