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This Article is From Apr 04, 2025

No Reciprocal Tariff A Positive For Pharma Players; Sectoral Tariff Overhang Prevails, Says ICICI Securities

India imports pharmaceutical drugs worth $800 million, of which 10% tariff is been charged on nearly $400 million of imports.

No Reciprocal Tariff A Positive For Pharma Players; Sectoral Tariff Overhang Prevails, Says ICICI Securities
India’s total pharma exports to US stood at $12.8 billion in CY24 (as per US International Trade Commission) which currently do not see any tariffs.(Representative image. Photo source: Unsplash)
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Pharmaceutical imports into the US are currently exempted from these reciprocal tariffs. Though this provides a relief, the administration is studying various protective measures imposed by countries on drugs manufactured in US and if found unfair may lead to an imposition of sectoral tariff under Section 232 of the US Trade Act.

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

US President Donald Trump has invoked his authority under International Emergency Economic Powers Act of 1977 (IEEPA) and has imposed a flat 10% tariff on all countries (effective April 05, 2025) and a higher tariff on companies with which it has a higher trade deficit (effective April 09, 2025).

Pharmaceutical imports into the US are currently exempted from these reciprocal tariffs. Though this provides a relief, the administration is studying various protective measures imposed by countries on drugs manufactured in US and if found unfair may lead to an imposition of sectoral tariff under Section 232 of the US Trade Act.

Besides, US also wants to become self-reliant in manufacturing of essential drugs which may also warrant shift in manufacturing of these drugs to US.

Click on the attachment to read the full report:

ICICI Securities Pharma_Sector_Update_Apr25.pdf
VIEW DOCUMENT

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