It won’t be over until it is. According to US President Donald Trump, his administration is considering potential pharmaceutical levies. “The pharma is going to be starting to come in at, I think, a level that you haven’t really seen before,” President Trump said, speaking to reporters aboard Air Force One.
Following this update at 11:15 a.m., pharmaceutical stocks fell precipitously, with the Nifty Pharma index being the biggest sectoral loser. Companies like IPCA Labs, Lupin, and Aurobindo Pharma saw a more than 6% decline, while the index fell more than 4.5%
Trump added, “We are looking at pharma as a separate category — we will be announcing that sometime in the near-future, not in the distant future.”
Prior to this, White House Press Secretary Karoline Leavitt, who has been with President Donald Trump since 20 January 2025, made a suggestion about bringing pharmaceutical production back to the United States. “We have outsourced our critical supplies chains in our countries. Do we want out life saving drugs and medicine and chips to be made in China or here in the United States of America? This is a common sense policy,” said Leavitt.
Domestic pharmaceutical players breathed a sigh of relief in trade on 3 April, while the other sectors faced significant selling pressure after the White House excluded pharmaceuticals from the reciprocal tariffs imposed by US President Donald Trump.
Trump revealed his tariff plan for several US trading partners on 2 April, often known as “Liberation Day,” which included a “discounted” broad-based charge of 26% on India. This amounts to half of the 52% claimed by India against the United States, which includes currency manipulation and trade barriers.
On ‘Liberation Day,’ which took place on 2 April, Trump unveiled his tariff proposal for a number of US trading partners, which included a “discounted” broad-based levy of 26% on India. This represents half of India’s 52% accusation against the United States, which includes trade barriers and currency manipulation.
According to a White House fact sheet, all pharmaceutical imports to the United States were protected from reciprocal duties. “Some goods will not be subject to the Reciprocal Tariff. These include copper, pharmaceuticals, semiconductors, and lumber articles,” said the document.
India’s pharmaceutical exports to the United States were primarily generic formulations, making drug access more expensive for American residents. As a result, they indicated that taxes on this sector were unlikely. However, with this update, pharmaceutical stocks may face significant levies.
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