US President Trump’s Next Trade Move: 100% Import Duty on Indian Medicines
US President Donald Trump has announced that, effective October 1, medicines imported from India and other countries will be subject to a 100% import duty. This comes on top of the 50% duty already imposed on Indian goods, and is widely viewed as a significant escalation in Trump’s trade measures targeting India.
Since assuming office in January, Trump has repeatedly imposed tariffs on imports from various countries, including India and China. Initially, a 25% tariff was applied to Indian goods. Subsequently, in response to India not complying with a directive to halt crude oil imports from Russia, Trump imposed an additional 25% duty, bringing the total to 50% on Indian products imported to the US. These measures have strained trade relations between India and the United States.
Indian Delegation Engaged in Trade Talks:
In response to the escalating tariffs, India’s Commerce and Industry Minister Piyush Goyal led a delegation to the United States to hold discussions with senior US trade officials. The team also included Rajesh Agarwal, Special Secretary of the Department of Commerce, and other senior officials. According to Indian government sources, these discussions covered multiple stages, focusing on both trade and non-trade issues. The delegation is scheduled to return to India by the end of this week.
Scope of the New Duties:
The newly announced 100% import duty will specifically target medicines imported from abroad. However, companies that have manufacturing facilities within the United States will not be affected by this tariff. In addition, Trump announced a 30% import duty on kitchen appliances, bathroom fittings, and toilet equipment, and a 25% duty on furniture. All of these duties will come into effect starting October 1.
Impact on Indian Pharmaceutical Industry:
The Indian pharmaceutical sector, which relies heavily on exports to the US, is expected to be significantly affected. Last year, Indian companies exported medicines worth approximately ₹31,000 crore to the United States, and in the first half of the current year alone, exports totaled around ₹32,000 crore. The sudden 100% duty is anticipated to disrupt trade and create financial challenges for exporters.
Trade experts have highlighted that this development could impact India’s overall trade balance with the US. Currently, India’s total exports to the US account for roughly 18% of its total merchandise exports, while imports from the US constitute about 6.22% of India’s total imports. Overall, India’s trade with the US represents about 10.73% of the country’s total foreign trade.
The announcement has created concern and disappointment among Indian pharmaceutical exporters, who had hoped for a positive outcome from ongoing trade negotiations. Analysts also warn that if no resolution is reached, the tariffs could significantly affect both short-term revenue and long-term strategic partnerships in the US market.
Summary:
- 100% import duty on medicines from India and other countries, effective October 1.
- Exemption for companies with US-based manufacturing facilities.
- Additional duties: 30% on kitchen/bathroom appliances, 25% on furniture.
- Impact: Indian pharma exports (~₹31,000–32,000 crore annually) may face major losses.
- Trade relations between India and the US under strain; negotiations ongoing.
US President Trump’s Next Trade Move: 100% Import Duty on Indian Medicines AthibAn Tv EN
