Dr Reddy’s, Lupin Lead Selloff: Nifty Pharma Drops 2% On Trump Tariff Shock | Markets News
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Pharmaceutical stocks came under pressure on Thursday, July 31, after US President Donald Trump announced a sweeping 25% tariff
Pharma Stocks Fall
Pharma Stocks Fall: Pharmaceutical stocks came under pressure on Thursday, July 31, after US President Donald Trump announced a sweeping 25% tariff on all Indian imports. The Nifty Pharma index dropped 1.5%, hitting a day’s low of 22,724.7, as sentiment turned cautious across export-oriented sectors.
Out of the 20 stocks on the index, 16 were trading in the red. Natco Pharma declined 1.7%, Dr Reddy’s Laboratories 1.5%, Lupin and Ipca Laboratories 1.3% each, while Zydus Lifesciences and Granules India also slipped over 1%.
India exported more than $10 billion worth of generic drugs and Active Pharmaceutical Ingredients (APIs) to the US in FY25. The new tariffs now threaten to disrupt a bilateral trade relationship valued at nearly $129 billion annually.
Trade Tensions Escalate
The tariff order was posted by Trump on Truth Social on July 30, shortly after the fifth round of trade talks concluded in Washington. He also hinted at further penalties in response to India’s continued defence and energy ties with Russia.
The sixth round of negotiations is expected to take place in New Delhi from August 25.
Earlier this month, Trump had warned of steep tariffs on pharmaceutical imports—potentially as high as 200%—as part of a broader “reciprocal trade” policy scheduled for rollout on August 1.
“Probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff,” Trump said while speaking to reporters after a campaign stop in Pittsburgh.
Pharma Not Spared This Time
While pharmaceuticals had previously been exempt from Trump’s tariff policy due to their essential nature, the April announcement marked a shift. Trump introduced reciprocal tariffs on over 100 countries, aiming to boost domestic manufacturing and reduce dependency on foreign suppliers like India and China.
With the August 1 implementation deadline now in sight, pharma exporters are bracing for more volatility.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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