Pharma Stocks Tumble After Trump Reiterates ‘Major’ Tariff Threats

Pharma stocks fell on April 9, 2025, a day after US President Donald Trump reiterated that the US will impose a “major” tariff on all pharmaceutical imports.

Trump, however, did not announce a deadline or by how much he plans to raise the tariffs on pharma imports. He said the tariffs will incentivise drug-makers to shift their operations to the US. He was speaking at an event organised by the National Republican Congressional Committee at the National Building Museum in Washington late on April 8, 2025.

“Tariffs on pharma will be there because we don’t make our own pharma drugs; they are made in another country. The same packet in the US is priced at $10 or more. We are going to tariff pharma in such a way that companies will come rushing to us very soon. The advantage we have is, we are a very big market. Very shortly, we will announce a major tariff on pharma, and when these companies hear that, they will leave China and other countries because most of their products are sold here. And they will be opening their plants here,” Trump said.

Ipca Labs, Glenmark, Biocon Drag Nifty Pharma

Nifty Pharma, the index tracking the performance of 20 major pharmaceutical stocks, tumbled as much as 2.64 per cent. Dragging the index the most was Ipca Laboratories, which fell about 6.5 per cent, followed by Glenmark and Biocon, each falling between 4.5 per cent and 5.5 per cent.

Aurobindo Pharma, Gland Pharma, and Lupin too fell over 3 per cent. Heavyweights Sun Pharma and Cipla also traded in the red.

Other pharma stocks such as Torrent Pharma, Natco Pharma, Granules, Mankind Pharma, and Dr Reddy’s Laboratories slipped more than a 1 per cent. Of the 20 index constituents, 19 traded in the negative.

Tax Rates on Pharma Between US and India

Earlier, the Trump administration had exempted pharmaceuticals and semiconductors from its tariff policy.

It is worth noting that the US accounts for a third of India’s overall pharma exports. At present, Indian imports face little to no taxes in the US, while India charges about 10 per cent tax on US pharmaceutical imports, according to a Reuters report.

A higher tariff on pharma imports would mean increased production costs for Indian drug manufacturers, which could eventually make their products less competitive against those from other countries.

A week ago, Trump imposed a 26 per cent reciprocal tariff on goods imported from India.