US President Donald Trump has announced reciprocal tariffs on about 60 countries to counter higher duties imposed globally on American products. Pavan Choudary, Chairman, Medical Technology Association of India (MTaI) said that the U.S. administration’s decision to impose reciprocal tariffs does not reflect informed policymaking.
“History has repeatedly shown that protectionist measures often do more harm than good, with the burden ultimately falling on consumers and patients in both countries. Economies prosper when they focus on their strengths, leveraging comparative advantages to enhance global trade. However, by disrupting supply chains through excessive tariffs, the U.S. risks not only reducing efficiency but also increasing healthcare costs for its own citizens,” Choudary said in a statement.
The decisions of reciprocal tariff on Indian imports stem from trade imbalances and perceived non-tariff barriers in sectors like medical devices and is intended to protect domestic industries but could inadvertently stifle the spirit of free and fair trade that benefits both nations, he highlighted. Instead of escalating trade restrictions, both countries should move to a more strategic, non protectionist and cooperative approach would serve long-term economic interests.
“On a positive note, the exemption of pharmaceuticals from these tariffs is a welcome reprieve for Indian drug manufacturers. This decision safeguards the continuing flow of affordable, high-quality medicines to the U.S., reinforcing the strong healthcare partnership between our countries. Since medical devices are classified in India as drugs we wish that this concession were also available for MedTech exports,” he explained.
Moreover, the broader global trade dynamics presents a strategic opportunity for India. The chairman maintained that the higher tariffs imposed by the U.S. on Chinese goods and several South Asian goods opens avenues for Indian exporters to strengthen their presence in the U.S. market, particularly in sectors such as textiles, footwear, and iron and steel.
“By leveraging its manufacturing capabilities and adhering to global quality standards, India can position itself as a reliable trade partner and enhance its footprint in these critical sectors. In light of these developments, both the Indian and U.S. governments should engage in dialogue towards a balanced and cooperative trade approach which will not only strengthen economic ties but also drive efficiency and consumer benefits on both sides,” he pointed out.
In 2023-24, India’s medical device exports to the US stood at USD 714.38 million, while imports from the US to India were significantly higher at USD 1,519.94 million, as per data shared by the Export Promotion Council of Medical Devices. India faces lower duty than other countries like China (34 percent), Vietnam (46 percent) and Taiwan 32 (percent).