As the world economy grapples with the impact of reciprocal tariffs announced by US President Donald Trump, the White House issued a list of commodities that have been spared, for now.
The list spells good news for India as pharmaceutical sector has ‘temporarily’ dodged the levies. At present, India charges 10 percent tariff on American pharma imports.
On the other hand, the US does not charge any levies on pharma imports from India. In a statement after the Rose Garden ceremony, the White House said that certain commodities have been kept out of the tariff ambit that will kick in from April 5.
These include semiconductors, lumber articles, copper and gold apart from pharma products. The list also includes energy and certain minerals that are not available in the US.
The White House also said that aluminium and steel articles along with auto and auto components are also exempted as they are already subject to Section 232 duties.
While India is analysing the impact of the ‘discounted tariffs,’ experts say that pharma sector is the biggest winner. In terms of trade, India imports pharma products worth nearly $800 million from the US, while exports to the country are worth $8.7 billion.
A BBC report, meanwhile, added that pharma is not just only sector that will heave a sigh of relief. The report said that India’s electronics sector may benefit from this new tariff policy as steeper duties on countries such as Vietnam may trigger some re-routing of the business.
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