Dr. Reddy’s shares fall 6%, Aurobindo Pharma 10% as Trump signals 25% tariffs on pharma imports
Pharmaceutical stocks plunged on Wednesday, with the Nifty Pharma Index dropping over 2%. Leading the selloff, Aurobindo Pharma slumped as much as 9.5% to Rs 1,053.45, making it the biggest loser in the pharma pack, after U.S. President Donald Trump signalled plans to impose a 25% tariff on imported drugs, triggering concerns over higher costs and potential disruptions for Indian drugmakers, which are among the largest suppliers to the U.S. market.
Dr. Reddy’s Laboratories slid 5.8% to Rs 1,128.90, while Zydus Lifesciences fell 4.8%. Sun Pharma, India’s largest drugmaker, dropped 3.2% to Rs 1,647.35, emerging as the top loser on the BSE Sensex and among the top five decliners on the Nifty 50 benchmark. Other major pharmaceutical firms also took a hit, with Lupin down 4%, Glenmark Pharma sliding 2.7%, and Cipla losing 2.2%.
Trump’s latest tariff threat—targeting pharmaceuticals, autos, and semiconductor chips—adds to existing global trade tensions. While he did not specify an implementation date, he indicated that levies on the sector would start at 25% and increase over time to push companies to set up production in the U.S.
Indian drug manufacturers, which supply nearly 40% of generic drugs used in the U.S., face heightened risks as pricing pressures and regulatory scrutiny have already weighed on the sector. The proposed tariffs could significantly impact margins, making Indian exports less competitive in the world's largest pharmaceutical market.
The latest move follows a series of trade measures by Trump
