Shares of Sun Pharmaceutical Industries Ltd fell 4.50% to ₹1,690.40 on Friday, declining ₹79.60 from the previous close of ₹1,770.00, after U.S. President Donald Trump announced that his administration is evaluating possible tariffs on pharmaceutical imports.
Although pharmaceutical products were temporarily exempt from the earlier round of reciprocal tariffs, Trump’s fresh remarks on Air Force One signaled renewed risks. “Pharma tariffs are going to come in at levels you haven’t really seen before. We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near-future and not too distant future. It’s under review right now,” he said.
This has reversed Thursday’s rally in pharma stocks, which had surged following temporary exemptions under Trump’s initial reciprocal tariff announcement. It is now evident that the exemption was short-lived.
The Trump administration is reportedly planning to investigate the pharmaceutical and semiconductor sectors under Section 232 of the Trade Expansion Act of 1962 — a clause that enables the U.S. government to take action if imports threaten national security.
Brokerage firm Citi stated that pharma companies will likely try to pass the tariff impact on to payors. However, if that fails, the increased costs could be absorbed across the supply chain. Citi also noted that a full pass-through is unlikely, adding pressure on margins.
Sun Pharma, being one of India’s largest pharmaceutical exporters to the U.S., was impacted sharply. The company’s market cap stands at ₹4.05 lakh crore, with a P/E ratio of 35.33 and a dividend yield of 0.92%. During Friday’s session, the stock traded between ₹1,684.90 and ₹1,778.85 with an average volume of 2.21 million shares.
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