Trump's Reciprocal Tariffs On India Exempt Pharma, Easing Mark Cuban's Price Hike Concerns

Billionaire entrepreneur and Cost Plus Drugs co-founder Mark Cuban won't have to raise medicine prices, as Trump’s new reciprocal tariffs on India exempt the pharmaceutical sector.

What Happened: While appearing on the Somebody's Gotta Win With Tara Palmeri podcast earlier this week, Cuban stated that if the Trump administration imposes tariffs on India, his company would be compelled to raise the prices of its medications. "We won't have a choice," Cuban stated

Interestingly, U.S. President Donald Trump announced a 26% reciprocal tariff on India. The pharmaceutical industry, however, was exempted from these new levies, as per the fact sheet released by the White House on April 2.

Cost Plus Drugs did not immediately respond to Benzinga’s request for comment.

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Cost Plus Drugs, co-founded by Cuban, strives to make pharmaceuticals more accessible through a transparent pricing model, which includes a markup of 15% on drug manufacturing costs and includes a possible pharmacy fee from their suppliers (approximately $5, plus $5 for shipping)

However, Cuban cautioned that imposing tariffs on goods, particularly medicines, imported from India would compel the company to raise its medication prices. He further explained that the company would be unable to absorb the costs of tariffs and broker fees, which would be passed on to consumers “directly.”

Why It Matters: India provides nearly half of the generic medicines—affordable alternatives to brand-name drugs—consumed in the U.S., significantly reducing healthcare costs. A study by consulting firm IQVIA revealed that in 2022, the U.S. saved nearly $219 billion due to Indian generic drugs.

Meanwhile, Cuban’s concerns over the potential impact of tariffs are not new. The Shark Tank judge advocates ‘strategic tariffs’ and highlighted the disproportionate impact of tariffs on lower-income Americans. He agreed with Commerce Secretary Howard Lutnick‘s view of tariffs as a form of consumption tax but also emphasized the potential economic consequences for the country’s most vulnerable populations.

• Read Next: Larry Summers Warns Trump’s Tariffs Will Deliver ‘Oil Crisis-Like Shock,’ Slash $30 Trillion From Economy As Markets Plunge

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.