Shares of Indian pharmaceutical companies, together with Gland Pharma Ltd, Laurus Labs Ltd, Glenmark Prescription drugs Ltd, and Biocon Ltd, dropped as a lot as 8% on Monday, 7 April, in response to feedback made by US President Donald Trump concerning the upcoming taxes on the pharmaceutical business. The inventory of different pharmaceutical companies fell between 2% to six% as properly.
Early Monday buying and selling noticed the Nifty Pharma index fall as a lot as 7%, extending its year-to-date decline to 14%. After ending at 20,560, the index reached an intraday low of 19,121.10.
On 2 April, Trump proposed sweeping reciprocal tariffs over 60 international locations. The pharmaceutical business did properly that day since Trump excluded it from the announcement, however the next day, he applied limitations on treatment imports into the USA.
Trump, whereas talking to reporters on Air Pressure One, stated, “Pharma tariffs are going to return in at ranges you haven’t actually seen earlier than. We’re taking a look at prescribed drugs as a separate class. We shall be asserting that someday within the close to future, and never too distant future. It’s below evaluate proper now,”.
Pharmaceutical imports from India are at present tax-free within the US. Nonetheless, pharmaceutical imports from the US are topic to a ten% tariff in India.
If reciprocal tariffs are imposed on the pharmaceutical business, they’ll solely complete 10% on imported medication.
At 12:31 pm, Nifty Pharma was buying and selling 2.96% decrease at Rs 19,952.40.
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