Bhaskar Chakravorti, dean of global business at Tufts University’s Fletcher School, says President Donald Trump’s new 100% tariffs on pharmaceuticals won’t hit India right away. But he warns that Indian generic drug makers could face them down the line.
In a chat with , Chakravorti explained that the tariffs target patented and branded drugs only—for now. “This move won’t directly slam Indian manufacturers as hard, but it’s getting close,” he said. “I wouldn’t rule out tariffs on generic pharmaceuticals sometime soon.”
Trump rolled out the policy Thursday, saying any company making patented pharma products must build a U.S. plant to dodge the 100% hit, starting October 1. This comes amid heated US-India trade talks, including cracks on H-1B visas that bring skilled Indian workers to America.
Chakravorti sees value in keeping those US-India trade negotiations going strong. “It makes sense to talk trade issues and visa changes together for mutual wins,” he noted. “Find a peaceful fix to the tariff standoff. Handle H-1B separately but in parallel.”
Sources say India is pushing hard for U.S. tariffs under 20% to protect its edge—especially since other Asian countries like those in South and Southeast Asia already face rates of 15-20%. New Delhi also wants the U.S. to drop its extra 25% tariff on Indian buys of Russian oil. India argues it’s unfair to single it out when Europe should cut back too, matching the Trump administration’s stance.
Still, Chakravorti, a former McKinsey partner, urges India to cut Russian oil imports as a big goodwill gesture. “That would send the strongest signal to Trump from any major nation,” he stressed. “India can say it’s not easy economically, but it supports Trump’s push for peace. It’s a smart offer.”
Top Indian officials are already in action. External Affairs Minister S. Jaishankar met U.S. Secretary of State Marco Rubio on Monday during UN General Assembly talks. Meanwhile, Commerce Minister Piyush Goyal and U.S. Trade Representative Jamieson Greer wrapped up “constructive” discussions in New York. India’s Commerce Ministry said both sides shared ideas on a potential deal and aim to wrap up a fair trade agreement soon.
Chakravorti admits Trump’s economic moves are backfiring on the U.S. itself. “The American economy is hurting, consumer spending is down, and it’ll keep going,” he said. But for countries like India, the U.S. market remains unbeatable in the short term. “Try combining 50 other markets—they still won’t fill the gap.”
Looking ahead, Chakravorti pushes India to rebuild ties with the U.S., even with Trump in charge. “Trump’s the main hurdle, but he’s clear about what ticks him off or wins him over,” he said. “Start with a strategy to get on his side now, and build a stronger relationship long-term. Right now, things feel broken, but they can mend.”
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