Indian Pharma Companies Unaffected by Trump's Trade Tariffs

Indian companies in the pharmaceutical and steel sectors remain largely unaffected by the Trump administration’s impending trade tariffs, with industry leaders downplaying concerns about their impact on Indian exports to the US.

Dilip Shanghvi, Managing Director of Sun Pharma, stated that Indian pharmaceutical exports play a crucial role in helping the US government control healthcare costs. Speaking at a summit on "Global Winds and India's Destiny: Is India Truly Resilient?", he noted that certain essential medical products may receive exemptions from the tariff scope, suggesting minimal impact on the industry.

While pharmaceuticals are not yet subject to tariffs, the Trump administration has signaled a 25% tariff on steel imports. However, Naveen Jindal, Chairman of Jindal Steel and Power, argued that the move might not hurt Indian steel manufacturers. He pointed out that many US steel imports already face tariffs exceeding 200%, including anti-dumping duties and countervailing duties. If these additional duties are replaced by a flat 25% tariff, he suggested that Indian steel companies might actually benefit.

Both leaders expressed confidence in India’s long-term export competitiveness. Shanghvi emphasized that the generic drug industry has already experienced significant price adjustments over the years. If new tariffs are introduced, he believes they will mostly be passed on to US consumers, rather than hurting Indian companies. Additionally, he highlighted that pharmaceutical manufacturing requires a long lead time—between five to seven years—making it unlikely that US domestic production will quickly replace Indian imports.

Jindal, however, cautioned that while direct tariffs may not significantly impact Indian steel exports, they could lead to indirect effects on local steelmakers and the global market