Indian pharmaceutical stocks traded higher on Tuesday morning, even as U.S. President Donald Trump issued a fresh warning of steep tariffs on imported drug products. In remarks that could reshape global pharmaceutical supply chains, Trump said his administration is preparing to impose tariffs of up to 200 percent on pharmaceutical imports. However, he assured that the tariffs would not be implemented immediately, signaling a grace period of up to 18 months for companies to shift their manufacturing to the United States.
“We’re not going to do it right away,” Trump said at a campaign rally. “We’ll give people about a year, a year and a half to come in. After that, they’re going to be tariffed at a very, very high rate—like 200 percent.”
He added that the exact tariff structure will be announced by the end of July. The phased approach, aimed at encouraging pharmaceutical manufacturing in the U.S., appears to have soothed investor sentiment for now—despite the long-term threat it poses to India’s export-heavy drug sector.
Markets responded with cautious optimism. On the National Stock Exchange, the Nifty Pharma index was trading 0.4 percent higher at 22,252.50 as of 9:25 a.m. Shares of Lupin, Biocon, Aurobindo Pharma, and Laurus Labs led the gains, rising as much as 1.5%. Broader healthcare and FMCG indices were also in the green, suggesting that investors are viewing Trump’s comments as more of a long-term policy signal than an immediate disruption.
Still, the implications for India’s pharmaceutical industry could be far-reaching. Generic drug exports to the U.S. account for a significant portion of revenue for many Indian pharma companies. Analysts caution that if such high tariffs are eventually implemented, they could severely hit margins and global competitiveness.
“The market’s immediate reaction is muted because there’s a buffer window,” said a senior pharma analyst at a Mumbai-based brokerage. “But if Trump follows through on a 200 percent duty, it would be a major blow for Indian manufacturers who depend heavily on U.S. demand.”
With the formal announcement expected by the end of the month, both investors and industry players are bracing for what could be one of the most consequential trade moves for global pharma in recent years.
