Overview

• President Donald Trump confirmed plans to impose a significant tariff on pharmaceutical imports, reversing earlier exemptions for the sector.
• The tariff is intended to incentivize pharmaceutical companies to relocate manufacturing operations to the United States.
• India's pharmaceutical sector, heavily reliant on US exports, faces risks of revenue losses, price hikes, and potential drug shortages.
• European pharmaceutical companies warn that the tariff could accelerate a production shift to the US, undermining Europe's industry competitiveness.
• Industry groups in Europe are urging the EU to implement swift regulatory changes to counteract the potential exodus of pharmaceutical production.