Pharma Shares Fall After US President Imposes 100% Tariff on Medicine

India’s pharma sector, valued at $61 billion in 2024, is projected to develop to $100 billion by 2025, pushed by sturdy exports, continual illness demand, and home innovation. Pharmaceutical exports hit $30.5 billion in FY25, rising 9.3%, whereas the sector maintains 20% of the worldwide generic medication provide. This positions India as a worldwide healthcare chief.

Nifty Pharma fell sharply by 2.25%, shedding 484.50 factors, buying and selling at 21,480.25 after the US introduced a 100% tariff on branded and patented drug imports from October 1. The transfer triggered investor issues, because it might considerably influence firms counting on US exports. Nonetheless, corporations with current or upcoming manufacturing vegetation within the US will probably be exempt, providing partial aid. The event raises uncertainty for the sector’s near-term outlook and will drive strategic shifts in operations.

In August, Trump cautioned that US tariffs on pharma imports might climb as excessive as 250%. He outlined a phased method, starting with a smaller levy, then steadily escalating to 150% and finally 250%, signaling a chronic risk to international pharmaceutical commerce.

The US Commerce Division’s Part 232 investigation into the pharmaceutical sector has widened to incorporate medical gadgets akin to masks, gloves, syringes, and needles. This raises the danger of upper tariffs, intensifying stress on exporters and including uncertainty to international healthcare provide chains.

The US Commerce Division clarified that prescribed drugs, over-the-counter medicines, biologics, and specialty medication are excluded from the present investigation. These pharmaceutical imports are being assessed individually beneath one other Part 232 probe, indicating a targeted assessment of nationwide safety dangers in different medical items.

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Shares that plummeted after tariff announcement

Written by Abhishek Singh