Indian Pharma Stocks Tumble 1.7 After Trump’s Tariff Threats

Indian pharmaceutical stocks faced a significant 1.7% drop on Wednesday, following U.S. President Donald Trump’s announcement of plans to impose a "major" tariff on all pharmaceutical imports. The U.S. accounts for nearly one-third of India’s pharma exports, making the industry highly vulnerable to such threats.

Trump’s comments reignited fears after his earlier reciprocal tariffs last week exempted pharmaceutical products, a move which had initially provided relief to the market. However, the sudden reversal in stance caused wild fluctuations in the stocks, with the entire pharma index sliding.

Key players like Gland Pharma, Lupin, and Zydus Lifesciences were hit the hardest, with losses ranging between 3% and 5%. Even industry giants such as Sun Pharma and Cipla were not spared, falling 1.69% and 1.87%, respectively.

India’s pharma exports to the U.S. predominantly consist of generics, which currently enjoy minimal tariffs. In contrast, India imposes a 10% tax on U.S. pharma imports. Experts warn that any changes to this balance could severely impact trade relations and profitability.

The pharma index has now recorded a staggering 14.4% decline this year, underscoring the challenges faced by the sector.