Erez Israeli, chief executive of Indian pharmaceutical firm Dr. Reddy's Laboratories, has warned that proposed US tariffs on generic drugs will lead to higher prices for American patients.
The comment underscores the direct cost implications of the trade policy shift for consumers and healthcare providers.
Israeli's remarks highlight the tension between the administration's goal of reshoring production and the immediate economic reality for buyers.
The proposed tariff regime, outlined by President Donald Trump, is designed to compel manufacturers to shift production facilities to the United States.
However, industry leaders argue that the levies will not achieve this goal quickly enough to prevent price increases in the interim.
The policy involves a phased approach, with tariffs on imported generic drugs set to escalate from zero percent to 200 percent by 2028.