By Admin 
Indian pharma stocks: US President Donald Trump has again taken a big decision regarding the tariff. He has now announced to install 100 percent tariffs on the pharma sector, because now 100 percent tariffs will be imposed on branded and patented medicines imported in America. It is a matter of relief that this new decree of Trump will not apply to companies which were already a factory in America or who are currently engaged in the work of making drug factory. Following this new announcement by Trump, on Friday, September 26, Sun Pharma Limited to Aurobindo Pharma Limited, Gland Pharma Limited, Lupine Limited, Cipla Limited will be in share focus of Indian pharma companies. The tariff of Trump on the pharma sector will be applicable from October 1.
Investigation was going on for a long time
The US Department of Commerce was investigating the pharmaceutical sector keeping in mind the National Security under Section 232 from September last year. The scope of investigation also included surgical masks, N95 respirators, gloves, syringes and other medical equipment. The US Department of Commerce had said, the purview of the investigation will not include medicines given on the medical prescription, without a prescription medicine, biologics and other special medicines as their imports are being investigated under a separate section 232.
What is section 232?
In fact, under section 232, the purpose of investigation is to control the import of things which is a threat to national security as they are likely to harm domestic industries. Before applying the tariff, it is investigated whether the import of these things is really a threat to national security. If yes, then the cost of importers is increased by putting tariffs, which affects the supply chain. Here, in the last one month, there was a decline of 2 percent in the Nifty Pharma Index, including companies like Cipla, Divies Laboratories and Ajanta Pharma. There has been a decline of 5 percent to 6 percent in his shares.
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