US President Donald Trump's Latest Tariff Threat

In a bold move that could reshape international trade dynamics, US President Donald Trump has announced plans to impose aggressive tariffs on pharmaceutical imports, targeting rates as high as 200%. This announcement has sparked concerns within the export-intensive domestic pharma sector, particularly in India.

Impact on Indian Pharma Giants

Despite the looming threat, domestic pharma stocks showed resilience. Sun Pharma, Aurobindo, and Lupin closed largely flat, while Dr Reddy's experienced a slight decline of over 1% on the BSE. India's pharma exports to the US are significant, with nearly $10 billion in value and servicing about 35% of US prescriptions with affordable generics.

Future Strategies and Announcements

Analysts suggest that major players like Aurobindo, Sun Pharma, Lupin, and Cipla, which derive 35 to 50% of their revenue from the US, may need to rethink their strategies if tariffs are implemented. The US is expected to issue a separate announcement regarding the pharmaceutical sector soon.