Chennai— Marumalarchi Dravida Munnetra Kazhagam (MDMK) general secretary Vaiko on Friday warned that the United States’ decision to impose a 100 per cent import duty on pharmaceutical products could severely impact India’s pharma exports and spark a broader trade crisis between the two nations.
Citing World Trade Organization (WTO) data, Vaiko said pharmaceuticals are India’s largest industrial export, with the US being the primary market for Indian drugmakers.
“This move directly targets India’s pharmaceutical industry,” Vaiko said, urging the central government to treat the issue as an economic emergency.
India’s Generic Drug Industry at Risk
India exports roughly $12.7 billion (Rs 1.05 lakh crore) worth of medicines to the US annually, the majority of which are generic drugs—low-cost equivalents of branded drugs whose patents have expired.
Key Indian pharma companies such as Dr. Reddy’s, Lupin, and Sun Pharma dominate the US generic drug market. However, under the new policy announced by former US President Donald Trump, any pharmaceutical imports from companies without manufacturing bases in the US will now be subject to a 100% import tariff, starting October 1.
The White House has indicated that firms establishing production units within the US may be exempt from this duty.
Vaiko highlighted the scale of the potential economic impact, stating that Indian pharma exports to the US reached Rs 31,000 crore last year and had already crossed Rs 32,000 crore in the first half of this year alone.
“The new tariffs will make Indian drugs significantly less competitive, slashing our foreign exchange earnings and threatening thousands of jobs,” he warned.
Mounting Trade Pressure
The 100% tariff on medicines is the latest in a series of economic actions by the US targeting Indian exports. Vaiko noted that Washington had earlier imposed a 25% tariff following India’s continued import of Russian crude oil, defying US pressure.
Additionally, Indian exports now face:
50% tariffs on kitchen and bathroom fittings
30% tariffs on furniture
25% tariffs on heavy trucks
“This is nothing short of an economic war against India,” Vaiko said, accusing the US of using trade as a pressure tactic.
Call for Special Parliament Session
Vaiko urged the Union Government to act decisively and convene a special session of Parliament to address the crisis.
“The Centre must immediately discuss the US sanctions and formulate a strategy to safeguard Indian exporters, protect jobs, and uphold national economic interests,” he said.
He also called for a strong diplomatic response, saying India must assert its trade sovereignty while maintaining international partnerships.
