Tag: tariffs

  • Trump’s Phased Tariff Plan on Generic Drugs Threatens India’s Pharma Export Dominance

    Trump’s Phased Tariff Plan on Generic Drugs Threatens India’s Pharma Export Dominance

    US President Donald Trump has announced a phased tariff plan for imported generic medicines, offering a two-year window before imposing sharply higher duties. The proposal, aimed at encouraging pharmaceutical companies to shift manufacturing to the United States, could have significant implications for India’s export-driven generic drug industry.

    Under the plan, imported generic medicines will face zero tariffs for the next two years. Beginning in August 2028, the US will levy a 100 percent tariff for one year, followed by a 200 percent tariff thereafter. The policy is scheduled to take effect from August 1, 2026.

    Why India Has Most at Stake

    India is one of the major exporters of cheap generic drugs across the globe and holds an important place in the healthcare sector of the United States. Generic drug companies in India are responsible for almost 40 percent of generic drugs sold in the United States by volume, making them highly susceptible to any restrictions on their exports.

    According to the Global Trade Research Initiative (GTRI), India exported pharmaceuticals worth US$9.7 billion to the US during FY2024-25. This accounted for 38 percent of India’s total pharmaceutical exports.

    Industry Braces for Long-Term Impact

    Though the two-year grace period will give firms some breathing space, industry watchers feel that the new tariff structure will change the landscape of the pharmaceuticals business. Companies might be forced to think about increasing production facilities in America or rethinking their export strategy.

    The development is also likely to have an impact on the stock markets, with the stocks of certain Indian pharmaceutical giants facing pressure.

    Part of Trump’s Manufacturing Push

    This tariff idea is one of the latest attempts made by President Trump to ensure the production of pharmaceuticals in the US again. It is believed that such actions will result in lower dependence on imported drugs and help to make supply chains more secure. However, it may become another point of discussion regarding increased healthcare expenses and the international generic drug trade.

  • Nintendo Moves to Dismiss Class Action Over Switch 2 Tariff Refunds

    Nintendo Moves to Dismiss Class Action Over Switch 2 Tariff Refunds

    Nintendo has filed a motion in a U.S. court to dismiss a lawsuit demanding refunds for Switch 2 buyers following adjustments to import tariffs. The company argues that customers are not legally entitled to refunds because it never promised price reductions if tariffs changed.

    The lawsuit, initially filed in April 2026 by two consumers in California and Washington, claims Nintendo used tariff refunds to grow the company instead of returning the extra charges to gamers. The dispute stems from price hikes on Switch 2 controllers and the original Switch after U.S. tariffs were imposed—tariffs later declared illegal by the Supreme Court.

    In its legal filing, Nintendo stated it did not assure customers that the console’s price would fluctuate with tariff changes. “Customers knew the price before placing their orders and chose to buy the console at that amount,” the company said, emphasizing there are no legal grounds for refunds.

    Background of the Lawsuit

    The controversy began during the Switch 2 pre-order period. Nintendo delayed U.S. pre-orders to assess tariff impacts, but when orders opened, the console price remained unchanged—though the controller cost $5 more. After tariffs were overturned, Nintendo reportedly secured refunds on those duties, prompting the lawsuit.

    Plaintiffs Gregory Hoffert and Prashant Sharan seek class action status for all U.S. purchasers of price-hiked Nintendo items between February 1, 2025 and February 24, 2026. Nintendo CEO Shuntaro Furukawa previously stated the company views tariffs as a cost factor and incorporates them into pricing.

    Broader Implications

    The case raises a fundamental question for businesses: when a company saves money from reduced tariffs, must it lower prices for customers? Legal experts note that in most cases, companies are free to set their own prices unless they made explicit promises or violated consumer protection laws. Lower costs do not automatically translate to lower retail prices.