Trump announces 100% tariff on pharma; who will be impacted the most? check details

Indian pharmaceutical stocks are buzzing in trade on Friday after Trump announced 100% tariffs on pharmaceutical products. Shares of major Indian pharmaceutical companies like Sun Pharmaceuticals, Cipla, Lupin, Dr Reddy's and others are trading in red with upto 4% losses on Friday morning.

Among the NIFTY Pharma index, which was down over 2%, Natco Pharmaceuticals (-3.9%), Gland Pharma (-3.4%), Sun Pharmaceuticals (-3.4%), Laurus Labs (-3%), Biocon (-2.9%), Ajantha Pharmaceuticals (-2.9%) were the top losers in the sectoral index.

President Trump posted on the social media platform Truth Social, “Starting October 1, 2025, we will be imposing a 100% tariff on any branded or patented Pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America. “Is building” will be defined as “breaking ground” and or “under construction”. There will, therefore, be no Tariff on these Pharmaceutical products if the construction has started”

Indian Pharmaceutical companies heavily rely on the US for their pharmaceutical exports and other regulatory approvals from the industry body USFDA. However, Indian pharmaceutical exports are heavily reliant on the US for the generic pharmaceutical product categories, which are currently not under the ambit of tariffs. However, certain pharmaceutical companies are still exposed to the new tariffs announced overnight.

Here is what pharma tariffs are about, and who will be impacted the most

Indian companies selling branded pharma products: Most of the Indian pharmaceutical companies are engaged in generic drug manufacturing. However, certain companies like Sun Pharmaceuticals, Dr Reddy’s, Lupin, Biocon, Cipla and Aurobindo Pharma have a portfolio of branded pharma products.

Companies like Sun Pharmaceuticals, Dr Reddy's, Lupin, Cipla, and Zydus Life Sciences hold exposure for branded and speciality pharmaceutical products, which are currently exposed to 100% tariffs. However, companies that have more exposure to generic drugs in the US face limited risk as of now.