Indian pharmaceutical stocks fell 2.6% on Friday after US President Donald Trump announced a 100% tariff on branded and patented drugs, effective October 1.
All 20 constituents of the index were lower as of 9:30am IST. Heavyweight Sun Pharmaceutical Industries fell 3.4%.
The US takes slightly more than a third of India’s drug exports, mostly cheaper generics, which rose 20% to about $10.5 billion in fiscal 2025.
The near term impact of the tariffs is likely to be limited, as India mainly exports generics, ICICI Securities research analyst Pankaj Pandey said in a note.
"That being said, uncertainty still remains whether complex generics and biosimilars will come under tariff embargo in the future," Pandey added.
The latest salvo, which Trump said was to protect the US manufacturing industry and national security, follows sweeping duties on trading partners of up to 50% and other targeted levies on imported products such as steel.
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The barrage has cast a pall over global growth and paralysed business decision-making around the world, while the Federal Reserve has said it is also contributing to higher consumer prices in America.
Trump's latest announcements on Truth Social did not mention whether the new levies would stack on top of existing national tariffs. But recently struck trade deals with Japan, the EU, and the United Kingdom include provisions that cap tariffs for specific products like pharmaceuticals.
Trump also followed through on a pledge to "bring back" America's furniture business, saying he would start charging a 50% tariff on imported kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture. All the new duties take effect from October 1.
"The reason for this is the large scale 'FLOODING' of these products into the United States by other outside Countries," Trump said.
