return to news
  1. Pharma tariffs coming soon, says Trump: Nifty Pharma tumbles over 2%, Aurobindo Pharma, Granules top losers

Market News

Pharma tariffs coming soon, says Trump: Nifty Pharma tumbles over 2%, Aurobindo Pharma, Granules top losers

Upstox

2 min read | Updated on June 17, 2025, 17:03 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

The Nifty Pharma sector declined 2.05% during the day's trading before settling 1.89% lower at 21,622.80 level. It had touched an intraday low of the 21,516.95 level.

Tariffs

The US accounts for a third of India's overall pharma exports.

Pharma stocks tumbled on Tuesday, June 17, as US President Donald Trump said that tariffs on the sector will be announced soon. 

The Nifty Pharma sector declined 2.05% during the day's trading before settling 1.89% lower at 21,622.80 level. It had touched an intraday low of the 21,516.95 level.

Almost all the stocks in the sector were seen lower, with Aurobindo Pharma sliding the most by 3.48%, at the time of writing this article. 

At close, shares of Granules India were the biggest laggard on the index, declining 3.81%. Lupin (-3.6%), Natco Pharma (-3.42%), Laurus Lab (-3.12%), Aurobindo Pharma (3.09%) and Ajanta Pharma (-2.47%) were the other top losers.

Further, shares of Divis Lab (-2.36%), Zydus Life (-2.09%), Dr Reddy’s (-2%), Sun Pharma (-1.91%) and Glenmark Pharma (-1.81%) also slipped post the development.

The US accounts for a third of India's overall pharma exports. Indian pharmaceutical companies supply a substantial proportion of drugs to US residents, with four out of ten of all prescriptions filled in the US in 2022 being supplied by Indian companies.

As per reports, Aurobindo Pharma has the highest exposure to the tariffs, with 45% of its revenue depending on the US markets.

Lupin and Sun Pharma also have exposure of up to 38% and 35%, respectively.

In April, Trump had said that the sector will be facing tariffs. Speaking on the sidelines of the Air Force One event in April, Trump had told reporters, "Pharma tariffs are going to come in at levels you have never seen before." We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near future and not too distant future. It’s under review right now.”

Earlier news reports had said that the Trump administration will be investigating pharma and semiconductors under Section 232 of the Trade Expansion Act of 1962, which enables the US government, more so the president, to take necessary action to restrict the import of items that are deemed to threaten national security.

SIP
Consistency beats timing.
promotion image

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.