Indian Pharma Stocks tumble as Trump Hints at Tariffs on Drug Imports

Donald Trump's remarks threatening massive tariffs on all imports of pharmaceuticals led to a crash in the Indian pharmaceutical stocks. The news unsettled the Indian pharmaceutical industry, which depends heavily upon exports to the United States.

The Nifty Pharma Index declined by 1.7 percent, dragging the broader Nifty 50 down by 0.52 percent, as of 9.20 am IST. All 20 stocks on the pharma index traded in the red. Losses were led by Gland Pharma, Lupin, and Zydus Lifesciences with falls of 3 to 5 percent, while the bigger players Sun Pharma and Cipla fell 1.69 percent and 1.87 percent, respectively.

India exports a large volume of generic drugs to the U.S., which accounts for about one-third of its total pharma exports. Currently, these drugs face little or no tariffs. By contrast, India imposes a tax of roughly 10% on drug imports from the U.S. Trump, speaking at the National Building Museum in Washington on Tuesday, suggested that steep tariffs were imminent.

U.S. President, Donald Trump said, "Tariffs on pharma will be there because we don't make our own pharma drugs; they are made in another country. The same packet in the US is priced at USD 10 or more. We are going to tariff pharma in such a way that companies will come rushing to us very soon. The advantage we have is, we are very big market. Very shortly, will announce a major tariff on pharma, and when these companies hear that, they will leave China and other countries because most of their products are sold here. And they will be opening their plants here".