

President Donald Trump’s proposed 100% tariff on imported generic drugs could face significant commercial and political hurdles, particularly because generic medicines operate on thin margins and play a critical role in keeping US prescription costs low. For Indian drugmakers such as Sun Pharmaceutical and Dr. Reddy’s Laboratories, the high cost of shifting production to the US may make waiting out the policy more practical than immediately investing in new facilities.
Spencer Perlman, a healthcare analyst at Veda Partners, estimates that the proposed tariffs could increase total US prescription-drug spending by roughly 8% to 15%. Higher costs could ultimately fall on patients and the broader healthcare system, while making some low-margin medicines unprofitable and potentially contributing to shortages. Rather than broad tariffs, targeted incentives and diversified supply chains may offer a more effective way to strengthen US pharmaceutical resilience.
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