- Indian pharma shares fell after Trump announced a 25% tariff on Indian exports to the US
- Pharma sector currently exempt but tariffs on drug exports likely soon, per Trump’s post
- Nifty Pharma dropped 1.51%, underperforming the Nifty 50 which fell 0.86% intraday
Shares of Indian pharmaceutical companies came under pressure on Thursday after US President Donald Trump announced a 25% tariff on Indian exports to the United States. While the pharma sector remains exempt for now, In an earlier post, Trump indicated via a post on Truth Social that duties on drug exports are likely to be introduced soon.
Nifty Pharma dropped 1.51% at intraday as it underperformed benchmark Nifty 50 which dropped 0.86% at intraday.
Major players such as Sun Pharma, Dr. Reddy's Laboratories, Cipla, Divi's Laboratories, Aurobindo Pharma, Lupin, and Biocon faced market volatility.
U.S. is a key market for Indian drugmakers. Currently, generic medicines exported from India to the U.S. attract zero tariffs. However, the exemption, granted under reciprocal trade measures, is under review, and the U.S. Department of Commerce has concluded its investigation under Section 232.
If the proposed 25% tariff is extended to pharmaceutical exports, it could significantly impact margins and competitiveness for Indian firms.
The tariff announcement also includes unspecified penalties for purchasing oil and other commodities from Russia, adding another layer of uncertainty to India's trade outlook.
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