Shares of Indian pharmaceutical businesses, including Gland Pharma Ltd, Laurus Labs Ltd, Glenmark Pharmaceuticals Ltd, and Biocon Ltd, dropped as much as 8% on Monday, 7 April, in response to comments made by US President Donald Trump about the upcoming taxes on the pharmaceutical industry. The stock of other pharmaceutical businesses fell between 2% to 6% as well.

Early Monday trading saw the Nifty Pharma index fall as much as 7%, extending its year-to-date decline to 14%. After ending at 20,560, the index reached an intraday low of 19,121.10.

On 2 April, Trump proposed sweeping reciprocal tariffs over 60 countries. The pharmaceutical industry did well that day since Trump excluded it from the announcement, but the following day, he implemented limitations on medication imports into the United States.

Trump, while speaking to reporters on Air Force One, said, “Pharma tariffs are going to come in at levels you haven’t really seen before. We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near future, and not too distant future. It’s under review right now,”.

Pharmaceutical imports from India are currently tax-free in the US. However, pharmaceutical imports from the US are subject to a 10% tariff in India.

If reciprocal tariffs are imposed on the pharmaceutical industry, they will only total 10% on imported drugs.

At 12:31 pm, Nifty Pharma was trading 2.96% lower at Rs 19,952.40.

Unlock profitable opportunities every day! Unicorn Signals provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Unicorn Signals and start winning now!