Pharma stocks slide up to 7% as Trump hints at unprecedented tariffs on sector

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Shares of Indian pharmaceutical companies, including Aurobindo Pharma, Laurus Labs, IPCA Laboratories, and Lupin, dropped as much as 7% on Friday after U.S. President Donald Trump signaled that tariffs on the sector were imminent.

Speaking to reporters aboard Air Force One, Trump stated that his administration was evaluating potential tariffs on pharmaceuticals. “Pharma is going to start coming in at, I think, a level that you haven’t really seen before,” he said, hinting at forthcoming trade measures.


He further clarified that pharmaceuticals were being considered as a separate category for tariffs, with an announcement expected soon. “We are looking at pharma as a separate category. We will be announcing that sometime in the near future—not in the distant future,” he added.

The remarks come just a day after pharma stocks had rallied on expectations that the sector would be spared from trade restrictions. On Thursday, the Nifty Pharma index surged 2.3%, with IPCA Laboratories climbing 4.6%, while Lupin, Sun Pharmaceutical, and Cipla gained 3–4%.


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Trump’s tariff plan, unveiled on April 2 and dubbed "Liberation Day," introduced a broad-based 26% tariff on Indian imports, which the U.S. administration claims is half of what India effectively charges American businesses when factoring in trade barriers and currency practices.Initially, pharmaceuticals were excluded from the list of items subject to reciprocal tariffs, according to a White House fact sheet. “Certain goods will not face the Reciprocal Tariff, including copper, pharmaceuticals, semiconductors, and lumber,” the document stated.Experts had previously suggested that India’s pharmaceutical exports—primarily composed of generic drugs—were unlikely to face new tariffs, as such measures could increase healthcare costs in the U.S. However, Trump’s latest statement indicates the sector may no longer remain exempt, raising concerns among investors.

Also Read: Bear.exe has crashed the system! IT stocks down up to 43%. Buy the dip or abort?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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