Tariff Announcement Sparks Pharma Stock Decline
Well, here we go again!
President Donald Trump is back with his tariff tantrum, this time targeting branded and patented pharmaceutical products with a WHOPPING 100% tariff starting October 1st. At this point of time, Donald Trump’s tariff tantrums look like some kind of market manipulation gimmick!
What could be His big idea? Make pharma companies build factories in the U.S. or face the music, and the tariffs. Sounds like a classic case of “America First”, but the big question is what about the rest of us?
On the homegrounds, Indian pharma giants like Sun Pharma, Lupin, and Biocon didn’t take this news lightly.
Their stock prices took a nosedive faster than you can say “patented drugs.”
Now It’s no secret that the U.S. is the biggest market for Indian pharma exports, so this tariff move feels like a punch in the gut. While Trump thinks building plants in America will solve everything, Indian companies are left wondering: Is this smart protectionism or just a trade tantrum?
Stay tuned, the pharma drama is far from over!
Pharma Stock Decline: Sun Pharma, Lupin, and Biocon Stock Performance (September 26, 2025)
| Company | Last Price (INR) | % Change (Intraday) |
|---|---|---|
| Sun Pharma | 1588.0 | -2.42% |
| Lupin | 1938.1 | -1.29% |
| Biocon | 347.2 | -2.46% |
The decline in these stocks reflects broader concerns about the potential impact of the tariffs on Indian pharmaceutical exports to the U.S., a major market for these companies.
Sharp Pharma Stock Decline After Trump’s Tariff Announcement- Key Moves
- Sun Pharma, Lupin, Natco Pharma, Laurus Labs fell over 3% on Friday.
- Trump announced 100% tariffs on branded/patented pharma starting Oct 1, unless manufacturing plants are built in the US.
- Nifty Pharma index dropped 2.6%, dragged by Natco, Laurus, Sun Pharma, Gland Pharma, IPCA, Biocon, all down 3%+.
- Zydus Lifesciences, Divi’s Labs, Ajanta Pharma, Granules India, Alkem, Mankind Pharma, Lupin slipped over 2%.
Trump’s Statement on Tariff Exemptions
Trump posted on his Truth Social that there would be no levies on pharmaceutical imports if companies have broken ground on a US manufacturing plant, or if such a plant is under construction.
“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America. ‘IS BUILDING’ will be defined as, ‘breaking ground’ and/or ‘under construction.’ There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started,” Trump wrote.
Impact On Indian Pharma Companies
Experts indicate that a new 100% tariff introduced by Trump on branded and patented pharma products may be a nightmare for Indian exporters, and here’s why you should care.
The US is India’s largest pharma customer, accounting for 35% of our exports ($10 billion in FY25 alone!). While the move currently targets branded drugs, it’s unclear whether complex generics and specialty medicines might also get caught in the crossfire. But here’s a breather- companies already building plants in the US could be spared. So, when watching pharma stocks, keep an eye on who’s “building it better”, they just might dodge the storm!
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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