Indian pharmaceutical firms have spent decades supplying American patients with affordable medicines. That dominance will be difficult to challenge, despite President Donald Trump’s threat to impose steep tariffs on imported generic drugs.
His pledge last month to apply a 100% levy on companies making off-patent medications by 2028 (rising to 200% a year later) unless they move production to the US faces formidable commercial and political obstacles. Instead of rushing to fire up new manufacturing facilities, the likes of Sun Pharmaceutical Industries Ltd. and Dr. Reddy's Laboratories Ltd. would be better off biding their time. The duties may never fully materialize.
