Citi has issued a note stating that the pharma sector has been excluded from the reciprocal tariffs announced by the Trump administration, a development seen as a positive for Indian pharmaceutical companies.
According to the brokerage, it remains unclear whether this exemption is a short-term or medium-term policy, but the fact that pharma is currently not targeted offers relief to the sector, especially amid broader trade tensions sparked by the new U.S. tariff regime.
Citi emphasizes that this aligns with their long-standing view. “We have consistently assigned a low probability of tariffs on Indian pharma, and this outcome supports that assessment,” the note stated. The brokerage maintains a cautiously optimistic tone, suggesting that as long as pharma remains outside the tariff framework, the sector may continue to operate without disruption in the U.S. market.
This development may support near-term sentiment for Indian pharma stocks, which have already seen a mild uptick in anticipation of being spared from the tariff list.
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