Trump slaps 100% pharma tariff; India spared for now

WASHINGTON: US President Donald Trump announced that America will impose a 100% tariff on branded pharmaceutical products entering the country starting October 1, though India's fast-growing pharma exports to the United States are likely to be spared much of the financial impact given that most Indian exports are generic drugs rather than patented products.

- Shashank Mattoo

"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," Trump declared in a Truth Social post on Friday.

The president clarified that "IS BUILDING" would be defined as "breaking ground" and/or "under construction," with no tariffs applying to pharmaceutical products if construction has started.

Later, a White House official told Reuters that the tariffs do not apply to countries that already have negotiated trade deals.

Despite the limited direct impact, Indian pharmaceutical stocks fell sharply on Friday as investors grappled with both relief over exemptions and uncertainty about future policy shifts. Analysts described the decline as "sentimental," noting that India's exports to the US are primarily generic medicines which remain exempt from the tariffs.

Wockhardt Ltd tumbled 9.40%, Laurus Labs declined about 6%, Indoco Remedies fell 5.35%, and Zydus Lifesciences dropped 4.21% Sun Pharmaceutical Industries, India's largest drugmaker by revenue, fell about 3% despite having limited exposure to the tariffs.

Biocon, which makes complex biosimilars for cancer treatment and has significant US exposure, declined about 4.6%.

The BSE Healthcare index dropped 2.14% to 43,046.69. The benchmark Sensex index dipped nearly 1%.