New Delhi, April 3 -- The recent imposition of a 27 per cent reciprocal tariff on Indian exports by the United States, while exempting the pharmaceutical sector, has raised concerns about potential future trade restrictions on drug exports.

According to a report by HDFC Securities, pharmaceutical products could become subject to duties under the Trade Expansion Act of 1962 in future trade actions.

The Trade Expansion Act of 1962 grants the U.S. President the authority to modify international trade tariffs, including imposing new duties on imports. While Indian pharmaceutical exports remain unaffected in the first round of tariffs, the report warned that this relief may be temporary.

It said, "The key concerns around price increase for ...