As the global economy struggles with the effects of retaliatory tariffs imposed by U.S. President Donald Trump, the White House has released a list of goods that have been temporarily exempted.
This is particularly favorable for India, as its pharmaceutical industry has managed to avoid the tariffs for now. Currently, India imposes a 10% tariff on pharmaceutical imports from the U.S., whereas the U.S. does not impose any tariffs on Indian pharmaceutical imports.
Following a Rose Garden announcement, the White House clarified that certain goods will not be affected by the new tariffs set to take effect on April 5. These exempted items include semiconductors, lumber products, copper, gold, pharmaceuticals, energy resources, and specific minerals not found in the U.S.
Additionally, aluminum, steel, automobiles, and auto components have been excluded, as they are already covered under Section 232 duties.
While India continues to evaluate the impact of these adjusted tariffs, experts believe that the pharmaceutical sector stands to gain the most. India imports approximately $800 million worth of pharmaceutical products from the U.S. while exporting $8.7 billion worth to the American market.
Meanwhile, a BBC report suggests that the pharmaceutical industry isn’t the only one benefiting. India’s electronics sector could also gain from the tariff policy, as higher duties on countries like Vietnam may result in businesses shifting their supply chains to India.
