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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US President Donald Trump on Tuesday (5 August 2025) threatened India to increase the tariff again. He said that India is not a good trade partner. The US has currently imposed 25 percent tariff on India, which is going to be effective from August 7, 2025. Trump said that in the next 24 hours we will increase the tariff on India.

Trump will impose 250% tariff on pharma

In an interview to the US news channel CNBC, Trump warned to impose 250% tariff on Pharma Industries. Trump said, ‘We will initially put some tariffs on medicines, but after one or a year and a half, it will increase it to 150 or 250 percent. We will do this because we want medicines to be made in our country.

Trump has announced this at a time when pressure on pharmaceutical industry in America is being increased so that companies can make medicines in America itself. He has recently demanded a huge reduction in prices from major drug suppliers, otherwise he has warned of strict action.

The White House said in May 2025 that the price of drugs in the US is three times more than other developed countries. Since imposing 10 per cent tariffs on almost all trading partners in April, Trump has imposed tariffs on products in different countries at different rates.

Russia advised Trump

Trump accused India of buying huge amount of oil from Russia and selling it again for profit. Amid the threats of Trump, Russia supported India and said that sovereign countries have the right to choose their partners in business and economic cooperation on the basis of their interests.

US President Trump had said a day earlier that he would increase the US fee on India. He also accused India of buying a huge amount of Russian oil and selling it on huge profits. A few hours after Trump’s statement, India retaliated on the US and European union for purchasing crude oil from Russia, which has now threatened to increase the tariff on India within 24 hours.

Also read: ‘25% tariffs on India and discounts on China …’, Former US Ambassador Nikki Haley gave advice to Donald Trump in UN