Dubai — Any imposition of tariffs on pharmaceutical imports by the United States would prove counterproductive and ultimately hurt American consumers, Wockhardt Chairman Habib Khorakiwala warned on Friday, amid rising global concerns over potential disruptions to medicine supply chains.
Speaking to ANI from Dubai, Khorakiwala emphasized India’s critical role in supplying affordable, high-quality medicines to the U.S. market. “India supplies 40 percent of prescription drugs to the United States,” he said, underscoring the longstanding dependency of the American healthcare system on Indian pharmaceutical exports.
His remarks follow an announcement earlier this week by former U.S. President Donald Trump that new tariffs targeting the pharmaceutical sector are under consideration — a sector that has largely remained exempt in previous rounds of trade actions.
“Counterproductive for the American People”
“The whole approach would be counterproductive for the American people, mainly because it is not easy to switch [suppliers] for medicine,” Khorakiwala said, citing the lengthy and stringent regulatory approval process enforced by the U.S. Food and Drug Administration (USFDA). Approvals for new suppliers or manufacturing shifts can take several years, making short-term substitution impractical.
He further warned that any new tariffs introduced on pharmaceutical products would likely translate into higher costs within the U.S. healthcare system, shifting the burden from manufacturers to consumers and insurance providers.
Cost Imbalance Between India and the U.S.
The Wockhardt Chairman also highlighted the sharp cost disparities between India and the United States in both pharmaceutical manufacturing and R&D.
“Building a pharma facility in the U.S. is significantly more expensive,” he noted. “Manufacturing costs are about three to four times higher, while research costs can be ten to twenty times more compared to India.”
India’s success in the U.S. pharmaceutical market over the past two decades, he added, has stemmed from its ability to meet strict regulatory standards at globally competitive prices — a formula that could be undermined by protectionist trade policies.
Trade Talks Amid Global Tariff Shifts
The warning comes as the U.S. applies a baseline 10% tariff on all imported goods and continues to reassess its trade relationships. While reciprocal tariffs with over 75 partner countries have been paused for 90 days to allow for negotiations, China remains an exception, and talks with India remain ongoing.
Industry analysts say the pharmaceutical sector is particularly vulnerable to such tariff measures due to its complex supply chains, regulatory barriers, and patient sensitivities to price shifts.
A Strategic Sector Under Pressure
For now, the pharmaceutical industry — long treated as a strategic sector — is bracing for a potentially disruptive shift in U.S. trade policy. Khorakiwala’s warning is a signal not just to policymakers, but to the broader global healthcare ecosystem, which depends heavily on smooth, affordable access to generic medicines.
“The real cost,” he said, “will be borne by the American healthcare system and, ultimately, the patients.”
