Overnight, US President Donald Trump unveiled steep import duties effective Oct 1, 2025 — 100% on branded & patented pharmaceutical drugs, 50% on kitchen cabinets/bathroom vanities, 30% on upholstered furniture (plus other categories). The lack of granular implementation details spooked sentiment across Indian exporters with sizeable US exposure.
Market reaction (Sep 26, intraday):
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Carysil ▼ 4.05% to ₹815.75 — home/kitchen maker with ~21.5% FY25 revenue from the US; product mix led by quartz sinks & surfaces.
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Gland Pharma ▼ 4.03% to ₹1,892.5 — US-focused injectables player.
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Sun Pharma ▼ 2.61% to ₹1,585.0.
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Zydus Lifesciences ▼ 2.26% to ₹996.2.
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Dr. Reddy’s ▼ 2.09% to ₹1,248.1.
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Aurobindo Pharma ▼ 1.50% to ₹1,080.5.
Why it matters:
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The US is India’s largest pharma market; even though the 100% duty targets branded/patented drugs, not plain generics, investors fear spillover to complex generics/specialty categories, pricing pressure, and regulatory uncertainty.
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For home products, the 50%/30% tariffs directly hit import feasibility and demand visibility for exporters (e.g., kitchen fixtures/furniture value chains).
What we don’t know yet:
The White House and Commerce Dept. have not released the formal rule text; scope, exemptions, and transition timelines remain unclear. Companies have not issued detailed clarifications as of publishing.
Big picture:
Until implementation specifics land, the move elevates policy risk premia for Indian exporters tied to US discretionary and healthcare demand. Expect continued volatility in stocks with high US revenue mix and in names where product lines overlap with the newly tariffed categories.
