US Imposes 25% Tariff on Indian Pharmaceuticals Raising Drug Costs

President Donald Trump announced a 25 percent tariff on all goods from India effective August 1, 2025, including pharmaceuticals, which is expected to raise healthcare costs in the U.S. India supplies nearly half of the U.S. generic drugs market, including vital antibiotics like Azithromycin, and the tariff is likely to increase drug prices and disrupt supply chains. Indian pharmaceutical firms may see reduced profits and slowed R&D, while the medical devices sector could benefit if tariff disparities with China remain significant. Trump has also pressured major drug manufacturers to lower prices in the U.S. by charging higher prices abroad, targeting countries like the UK and threatening to use tariffs if companies do not comply. This approach raises concerns about increased costs for foreign healthcare systems, including the UK's NHS. The combination of tariffs and trade policies signals a shift toward protecting American healthcare budgets at the expense of international drug pricing and supply dynamics.