Pharma shares got here below promoting stress in early trades on Friday after US President Donald Trump introduced a 100 per cent tariffs on branded pharmaceutical merchandise, beginning October 1.
Pharma shares declined as a lot as 5 per cent and Nifty Pharma index plunged 2.67 per cent. Solar Pharma declined 4.89 per cent, Biocon decreased 3.77 per cent, Abbott India Ltd slipped 3.46 per cent, Lupin fell 2.47 per cent and Cipla dipped 2.28 per cent within the early morning trades. Dr Reddy’s and Aurobindo Pharma declined 2.27 per cent, and Zydus Lifesciences was down 3.36 per cent.
“Beginning October 1st, 2025, we shall be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, except a Firm IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump stated in a publish on Reality Social.
““IS BUILDING” shall be outlined as, “breaking floor” and/or “below development.” There’ll, due to this fact, be no Tariff on these Pharmaceutical Merchandise if development has began. Thanks to your consideration to this matter!” he wrote.
“President Trump’s tantrums with tariffs are resuming with new tariff imposts on patented and branded medicine. India being an exporter of generic medicine is unlikely to be impacted by this. However maybe the president’s subsequent goal could be generic medicine. This determination could have a sentimental influence on pharmaceutical shares,” stated VK Vijayakumar, Chief Funding Strategist, Geojit Investments Ltd.
In accordance with Devarsh Vakil, Head of Prime Analysis, HDFC Securities , Indian pharmaceutical corporations, which primarily concentrate on exporting generic medicine, are anticipated to keep away from vital disruptions.
Nevertheless, corporations like Solar Pharma, which markets branded and patented merchandise via contract manufacturing organisations throughout the US and EU, could face measured impacts on account of their distributed manufacturing construction, he stated.
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The US President additionally introduced {that a} 50 per cent tariff on all kitchen cupboards, lavatory vanities, and related merchandise shall be imposed from October 1.
Trump is now shifting from country-specific tariffs to product-specific tariffs. Larger tariffs on vehicles, upholstered furnishings and many others. signifies that the Trump administration’s weaponisation of tariffs could proceed until US inflation spikes forcing a rethink of this coverage, Vijayakumar stated.
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