Shares of Indian pharmaceutical companies fell sharply on Wednesday after former U.S. President Donald Trump announced plans to impose a 25% tariff on imported pharmaceuticals, aiming to boost domestic manufacturing. The move triggered a broad-based sell-off in the sector, with Aurobindo Pharma, Lupin, Zydus Life, and Dr. Reddy’s Laboratories among the worst hit.
As of the latest session, Aurobindo Pharma dropped 6.35%, followed by Lupin (-4.05%), Zydus Life (-3.81%), and Dr. Reddy’s (-3.49%). Other pharma stocks such as Cipla, Sun Pharma, Glenmark, and Abbott India also witnessed significant declines ranging between 1.5% and 3%.
Trump’s tariff proposal, aimed at reducing dependence on pharmaceutical imports, particularly from countries like India and China, has raised concerns about higher costs and supply chain disruptions for Indian drug manufacturers exporting to the U.S. The announcement follows his earlier decision to impose a 10% tariff on all Chinese imports and a 25% tariff on steel and aluminum imports effective from March 12.
Market analysts believe the proposed duties, if implemented, could negatively impact India’s pharmaceutical export revenues, given that the U.S. is one of the largest markets for Indian generic drugs. However, industry experts also anticipate that the Indian government may engage in discussions with the U.S. administration to mitigate potential trade disruptions.
While the immediate impact has led to a sharp fall in pharma stocks, investors will closely watch further developments, including possible negotiations between trade officials and any exemptions for critical medicines.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your research or consult a financial advisor before making investment decisions. Business Upturn does not hold any liability for any losses arising from investment decisions based on this article.
