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Indian pharma shares fall on phased US tariff plan for generics
The plan keeps generic medicine imports at zero tariffs for two years from 1 August, then raises tariffs to 100% in 2028 and 200% in 2029 if manufacturers do not shift US production.
Indian pharmaceutical stocks fell on Friday, July 24, after US President Donald Trump announced a phased tariff plan covering imported generic medicines, prompting concerns about the outlook for Indian drug exporters. LiveMint Markets reported that Abbott India led the declines, with shares down 3.69% on the BSE, while Akums Drugs & Pharmaceuticals slid 2.06%, Acutaas Chemicals dropped 1.99%, and Aarti Drugs fell 1.76%.
Other companies also declined, including Alembic down 1.61%, Ajanta Pharma lower by 1.43%, and Artemis Medicare Services down 1.32%, reflecting weakness across the broader pharma sector.
Under the proposed policy, generic drugs imported into the US will face zero tariffs for two years starting 1 August. Beginning in August 2028, imports would be hit with a 100% tariff for one year, with the rate increasing to 200% from August 2029, unless companies relocate manufacturing to the United States during the transition.
LiveMint Markets also cited IQVIA data showing the US is the largest overseas market for Indian pharmaceutical companies, accounting for nearly 47% of the US generic medicines market. Research analyst Param Desai at PL Capital said the announcement was largely unexpected and that uncertainty remains around implementation, adding that the two-year transition is likely too short to move an entire manufacturing value chain and the tariffs would be set near the end of the current presidential term.