Indian Pharma Stocks Drop After Trump Announces 100% Tariff on Branded Drugs

Indian pharmaceutical shares fell sharply on Friday following US President Donald Trump’s announcement of a 100% tariff on branded and patented drugs, set to take effect from October 1.

All 20 stocks in the pharma index were trading lower as of 9:30am IST, with heavyweight Sun Pharmaceutical Industries down 3.4%.

The US accounts for slightly more than a third of India’s drug exports, which are largely made up of generics. These exports rose 20% to around $10.5 billion in fiscal 2025.

ICICI Securities research analyst Pankaj Pandey noted that the immediate impact of the tariffs is expected to be limited since India primarily exports generics. However, he added that “uncertainty still remains whether complex generics and biosimilars will come under tariff embargo in the future.”

Trump described the new duties as a measure to protect US manufacturing and national security. The announcement follows earlier sweeping tariffs of up to 50% on trading partners and targeted levies on imported products such as steel.

The series of tariffs has raised concerns about global growth and disrupted business decision-making worldwide, while the Federal Reserve has linked such measures to higher consumer prices in the US.

Trump’s post on Truth Social did not clarify whether the new levies would be added on top of existing tariffs. However, recent trade agreements with Japan, the EU, and the United Kingdom include caps on tariffs for certain products, including pharmaceuticals.

In addition to drugs, Trump reiterated plans to “bring back” American furniture manufacturing, introducing a 50% tariff on imported kitchen cabinets and bathroom vanities and a 30% levy on upholstered furniture, all effective October 1. “The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside countries,” he said.

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