New Delhi, July 26 -- Last week, US President Donald Trump announced a phased tariff plan for low-cost generic drugs, with the aim of bringing manufacturing back to the US. While many believe the plan is unviable and difficult to implement, Indian drugmakers will have much to lose if Trump goes through with it. Mint unpacks the potential impact, why the US remains a key market, and what companies can do.

On 22 July, Trump wrote in a social media post that the US will impose 100% tariffs on generic drugs after two years and increase this to 200% after another year. The aim is to "reshore" generic drug production to the US, with penalties for companies that don't build capacity in the stated period, he said.

The US is the largest overseas...