Indian pharmaceutical equities faced sharp selling pressure on Wednesday following US President Donald Trump’s announcement of a phased tariff regime for imported generic medicines.
The Nifty Pharma index dropped nearly 2% in early trade, with major exporters including Lupin, Sun Pharma, Cipla, Aurobindo Pharma, Ajanta Pharma, Gland Pharma, and Zydus Lifesciences among the session’s top losers.
This development follows previous threats from the Trump administration to impose a 100% tariff on imported generic medications, a measure previously slated to take effect in August 2028.
The market reaction underscores the sector’s vulnerability to US trade policy shifts.
While the new plan introduces a phased approach rather than an immediate blanket levy, the uncertainty surrounding implementation timelines and potential exemptions has triggered a broad repricing of risk across Indian drugmakers.
Investors are weighing the long-term cost implications of reshoring manufacturing against the immediate threat to export margins.
This development follows previous threats from the Trump administration to impose a 100% tariff on imported generic medications, a measure previously slated to take effect in August 2028.