THE intersection of trade policy and public health has always demanded careful handling. In the latest round of US-China tariff brinkmanship, however, it is evident that pharmaceuticals — once largely kept above the fray — are now increasingly being pulled into the arena of economic warfare. This is not only short-sighted but potentially dangerous.
Essential medicines, life-saving drugs, and their key ingredients are not ordinary commodities. They underpin national health systems and directly impact lives. Turning them into leverage tools in trade disputes risks creating not just market disruptions but humanitarian crises. The idea of taxing drugs and active pharmaceutical ingredients (APIs) as a retaliatory measure betrays a disregard for the globalised nature of modern healthcare supply chains.
The United States’ growing inclination to use tariffs as a policy instrument against China may offer temporary opportunities for other pharmaceutical exporters like India, but this is a double-edged sword.
While Indian drug makers could gain from reduced Chinese competition in the American generics market, the country’s heavy reliance on Chinese APIs leaves its own pharmaceutical industry dangerously exposed. Should this trade war escalate, supply disruptions and input cost spikes could quickly turn advantage into vulnerability.
This moment calls for foresight rather than opportunism. India’s policymakers and industry leaders must resist the temptation of short-term gains and instead focus on long-overdue structural corrections. Developing a reliable domestic API base, strengthening bulk drug parks, and ensuring regulatory agility should be immediate priorities. These initiatives cannot remain policy slogans; they must translate into funded, time-bound action plans. At a larger level, India also has an opportunity to position itself as a global advocate for responsible, health-sensitive trade framework. In an era when global health emergencies can spread rapidly, weaponising pharmaceutical supply chains sets a dangerous precedent. Trade policy needs to factor in health security as a global public good, immune to transactional politics.
India’s pharmaceutical industry, often lauded as the ‘pharmacy of the world,’ has both the capacity and responsibility to lead by example. It must prioritise resilience, regulatory credibility, and ethical business conduct over mere market share. Now is the time for India’s policymakers to accelerate long-discussed reforms in the pharmaceutical sector, from boosting domestic API production to streamlining regulatory clearances. India can consolidate its global standing, but only by balancing commercial interests with long-term responsibility and diplomatic tact
