Pharma shares tumble on 100% US duty on branded drugs; generics spared, but concerns linger

Indian pharmaceutical counters slumped as much as 7% on Friday after the US announced a steep 100% tariff on imported branded and patented medicines produced without a domestic manufacturing base. The sell-off was largely a knee-jerk reaction to US President Donald Trump’s Thursday statement, which declared that from October 1, branded and patented drug imports lacking operational or under-construction facilities in the United States would attract the punitive tariff. Industry insiders and market experts believe the measure is unlikely to significantly disrupt India’s pharmaceutical exports—currently exceeding $10 billion annually—to the American market. They emphasized that India’s outbound shipments are dominated by generic drugs, which remain exempt from the levy. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.