50% Tariffs on Indian Goods Could Hit Medicine Prices, Indian-American Doctor Warns

Dr. Ravi Godse, an Indian doctor based in the United States, has called for calm and collaboration in response to President Donald Trump’s recent decision to impose a 50% tariff on Indian imports, a move that has heightened trade tensions between the two nations.

In a viral Instagram video, Dr. Ravi Godse expressed concern over growing anti-American sentiment among Indian communities, particularly within medical circles. He highlighted the deep ties between the US and India in healthcare, noting that American innovations, from surgical manuals to medical devices like pacemakers and robotic arms, are integral to Indian medicine.

Dr. Godse said ,“This is not the time for anger. It’s the time for gratitude and dialogue.”

The tariff increase, announced via an executive order on August 7, 2025, includes an initial 25% duty effective immediately and an additional 25% set to take effect after a 21-day period. The White House justified the move as a response to India’s continued purchase of Russian oil, citing national security concerns. The decision has sparked widespread debate, with potential economic impacts on India’s growth and manufacturing sectors.

While pharmaceuticals and active pharmaceutical ingredients (APIs) are currently exempt from the latest tariff hike under the ongoing Section 232 investigation, industry leaders warn this relief is temporary. President Trump has already hinted at imposing pharma-specific tariffs of up to 150–250% within the next 18 months, a move that could disrupt global drug supply chains.

Dr. Godse doesn’t see India as a country in need but as a country that leads. He praised India for making top medical technology affordable and accessible around the world. “India and the U.S. are natural friends,” said Dr. Godse. “Discussion is an exchange of knowledge. Arguing is just an exchange of ignorance” he added.

India supplies nearly 47% of U.S. generics, contributing to $219 billion in savings to the U.S. healthcare system in 2022 alone. Generics make up 90% of U.S. prescriptions, and most of these come from India, making it the “pharmacy of the world.” In 2024, India exported $12.5–12.7 billion worth of pharmaceuticals to the U.S., accounting for roughly 31% of its total pharma exports.

However, even a 25% pharma tariff could significantly raise drug prices, worsen shortages, and strain U.S. hospitals and insurers. The Association for Accessible Medicines (AAM) warns that such tariffs would undermine the availability of low-margin generics, discourage onshoring, and hurt patients in both countries.

Indian pharmaceutical companies are already implementing a multi-pronged defense strategy — including geographic diversification, supply chain resilience, and acquisitions of U.S.-based assets — to safeguard market access. Major moves include Aurobindo Pharma’s $250 million acquisition of Lannett Company and Syngene International’s $36.5 million purchase of a U.S. biologics facility. Others, like Natco Pharma and Alembic Pharmaceuticals, are diversifying into new markets and boosting local manufacturing to mitigate risks.

The medical devices sector has also been hit hard, with U.S. duties on Indian shipments now at 50%. Industry bodies like the Medical Technology Association of India (MTaI) call this “short-sighted,” warning it could weaken competitiveness against China and the EU, and ultimately harm American patients who rely on critical imports such as MRI equipment, orthopedic implants, and ECG machines.

India’s government is calling the tariffs unfair and is considering how to respond. Experts warn that the tariffs could hurt both countries India’s exports may slow down, and American consumers might face higher prices, especially on medicines and tech.

(Rh/Eth/VK/MSM/SE)