PMFAI Urges Government Action on U.S. Tariff Hike

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The Pesticides Manufacturers and Formulators Association of India (PMFAI) has raised serious concerns over the United States’ recent decision to impose a 50% tariff on agrochemical imports. The industry warns that this move could severely impact Indian exporters and disrupt global supply chains in pharmaceuticals, veterinary care, food security, and public health.

Tariff Linked to U.S. Reciprocal Trade Order

The tariff hike stems from a Trump administration order dated April 2, 2025, regulating imports under a “reciprocal tariff” framework to address U.S. trade deficits. While pharmaceutical products have been granted exemptions, PMFAI highlights a critical issue: Pharmaceutical-grade pesticides with proven medicinal and veterinary applications remain excluded from exemptions due to their classification under agrochemical HS codes.

Call for Exemptions on Medicinal and Veterinary Pesticides

PMFAI is urging the U.S. to reclassify certain agrochemical products under HS Chapter 30, which covers pharmaceuticals, to reflect their real-world applications.

Key products include:

*Permethrin – Listed in the U.S. Pharmacopeia for treating human lice and scabies

*Fipronil – An essential veterinary ectoparasiticide

According to PMFAI, such reclassification will ensure continued availability of these critical products for human and animal health.

Public Health Risks from Tariff Barriers

The association also called for exemptions on WHO-recommended public health pesticides crucial for controlling malaria, dengue, and other vector-borne diseases. Commonly exported molecules from India include:

*Permethrin

*Deltamethrin

*Alpha-cypermethrin

*Lambda-cyhalothrin

PMFAI warned, “Tariff barriers on these products could jeopardize ongoing public health programs in malaria and dengue-endemic regions.” India is one of the largest global suppliers of these
life-saving vector control tools.

Agriculture-Critical Molecules Also Affected

Beyond pharmaceuticals and public health, the tariff will impact key agrochemicals vital for U.S. agriculture.  Products such as: Mancozeb, Cypermethrin, 2,4-D, Chlorpyriphos, Diuron, Triclopyr, Lambda-Cyhalothrin, and Neem Seed Oil are not widely manufactured in the U.S. and have seen strong export volumes from India. The new tariff regime could disrupt U.S. food security supply chains reliant on these imports.

Industry’s Recommendations to Indian Government

To address these challenges, PMFAI has sought urgent intervention and outlined key measures:

*Bilateral negotiations with the U.S. for tariff exemptions on pharmaceutical-grade, WHO-approved, and food security-critical pesticides.

*Export rebates and RoDTEP enhancements to maintain competitiveness despite tariff barriers.

*HS Code reclassification to align medicinal-use pesticides under pharmaceutical/veterinary categories.

*Compensatory relief measures to offset tariff-related losses on Indian exports globally.

Global Health and Food Security at Stake

PMFAI emphasized that this issue is not just about trade but also a pharmaceutical, public health, and food security challenge. Restricting access to these essential products could hamper malaria control programs, veterinary disease management, and agricultural sustainability worldwide. India’s agrochemical industry plays a vital role in global health and food security. As per the press release, PMFAI urges the government to act swiftly to safeguard exports and ensure uninterrupted supply of critical pesticides.