TRUMP’S 200% PHARMA TARIFF THREAT: WHAT IT COULD MEAN FOR INDIAN PHARMA

Trump has hinted at a massive 200% tariff on pharma imports, with a 1 to 1.5-year window for companies to adjust. If this goes through, it could be a game-changer for Indian pharma—mostly on the downside. 🔹 US is India’s biggest market Indian pharma exports nearly $10B worth of drugs to the US, especially generics. A 200% tariff would make Indian products unviable overnight unless companies shift production to the US. 🔹 Margin pressure ahead Companies with high US exposure—like Aurobindo, Dr. Reddy’s, Gland, Zydus—could see serious margin compression. Either they absorb part of the cost or risk losing market share. 🔹 Stock-specific impact Stocks with 40–50% US revenue exposure are most vulnerable. Short-term sentiment could turn bearish if the policy looks likely to pass.