Pharma Stocks Slide Up To 3% After Trump Announces 100% Tariff Plan On Generic Drugs
· Free Press Journal
Indian pharmaceutical stocks came under heavy selling pressure on Wednesday after US President Donald Trump announced a phased tariff plan on generic medicines imported into the United States.
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The announcement raised concerns over the impact on Indian drugmakers, which are among the largest suppliers of affordable generic medicines to the US market.
The Nifty Pharma index declined 1.51% to 25,699.45 by 10:40 am IST. Major pharmaceutical companies, including Sun Pharma, Cipla and Dr Reddy’s Laboratories, traded lower amid concerns over the long-term impact of higher import duties.
Cipla and Dr Reddy’s Laboratories were among the biggest losers on the Nifty 50 index, falling 1.8% and 1.6%, respectively. Sun Pharma also remained under pressure, declining 0.9%.
Sensex, Nifty Fall Over 0.7% As Crude Oil Surge, Trump Tariffs Hit SentimentSelling was widespread across the pharmaceutical sector. Lupin dropped nearly 4%, while Piramal Pharma, Aurobindo Pharma and Gland Pharma declined more than 3% each.
Other companies including Ajanta Pharma, Glenmark Pharma, IPCA Laboratories, Zydus Lifesciences, Alkem Laboratories and Mankind Pharma also witnessed declines.
Trump announced that generic medicines imported into the US would continue to face zero tariffs for two years from August 1, 2026.
After this period, tariffs would increase to 100% from August 1, 2028, and rise further to 200% a year later.
According to Trump, the tariff policy is intended to encourage pharmaceutical companies to establish manufacturing facilities in the US.
He said companies that fail to shift production within the given timeframe would face higher costs, while rules for patented, branded and innovative medicines would remain unchanged.
Inside Section 301 Probe That Targets India And 59 Other Countries: Why Washington Is Penalising Trading Partners Over Forced-Labour LoopholesThe move has put Indian pharmaceutical companies under scrutiny due to their strong presence in the US generics market. Firms such as Sun Pharma, Cipla, Dr Reddy’s Laboratories, Lupin, Aurobindo Pharma and Zydus Lifesciences rely heavily on exports to the American market.