'Bhai char packet paracetamol, aur ek iPhone ley aana': Sanjeev Sanyal on NRI panic after Trump tariff

Economist Sanjeev Sanyal on Wednesday weighed in on the growing anxiety among Indians abroad as the US ramps up tariffs on key imports from India, including smartphones and pharmaceuticals. "NRI relatives are calling to say, bhai char packet paracetamol, aur ek iPhone ley aana,” the economist wrote, highlighting the ripple effects of President Donald Trump's escalating trade measures.

Apple reportedly shipped five planeloads of iPhones and other products from India to the US within three days during the last week of March. According to The Times of India, the move was aimed at beating a 10% reciprocal tariff imposed by the US administration. Apple's manufacturing centres in India and China accelerated shipments in anticipation of the hike, despite it being a typically slow export period.

Apple has now reportedly stocked its US warehouses with inventory sufficient for several months, which will help the company temporarily maintain pricing without passing the tariff burden onto consumers. "The reserves imported at lower duty will offer short-term protection from the higher costs Apple will incur on new shipments under the revised tax rates," sources were quoted as saying.  

Meanwhile, Trump has signaled that pharmaceuticals are next in line. “We are going to be announcing very shortly a major tariff on pharmaceuticals... Once we do that, they are going to come rushing back into our country, because we are the big market,” the former US President said during a Republican event.

Lamenting the lack of local manufacturing in the pharmaceutical sector, Trump said the new tariffs would encourage companies to relocate operations back to the US. "We want these companies to make their products here, in America, not in China or elsewhere," he added.

While the tariffs are expected to hurt Indian pharmaceutical companies by increasing production costs and reducing their price competitiveness, American consumers won't be spared either. The price of generic drugs is set to rise, making everyday medicines more expensive in the US.

According to estimates, if tariffs are applied across all pharmaceutical imports, the cost of low-cost generic pills could increase by up to $0.12 per tablet—adding roughly $42 (₹3,700) to annual medical expenses per person. For high-cost treatments, like cancer medications, the price hike could be as steep as $10,000.