- Shares of Indian pharma firms fell after Trump announced a 25% tariff hike on Indian exports to the US
- The total US tariff on Indian exports has risen to 50% following the new announcement
- Pharma sector currently remains exempt from the new tariffs but drug duties may be introduced soon
Shares of Indian pharmaceutical companies came under pressure on Thursday after US President Donald Trump announced an additional 25% tariff on Indian exports to the United States, bringing the total rate to 50%.
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 0.66% intraday, as it underperformed the benchmark Nifty 50, which dropped 0.46% intraday.
Major players such as Zydus Life, Sun Pharma, Dr. Reddy's Laboratories, Cipla, Divi's Laboratories, Aurobindo Pharma, and Biocon declined.
Meanwhile, Lupin was the only drugmaker that defied the pharma stock declines. The stock rose 0.2% during the trade.
The US is a key market for Indian drugmakers. Currently, generic medicines exported from India to the US attract zero tariffs. However, the exemption, granted under reciprocal trade measures, is under review, and the US Department of Commerce has concluded its investigation.
If the proposed 50% tariff is extended to pharmaceutical exports, it could significantly impact margins and competitiveness for Indian firms.
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