Indian pharma stocks, including Sun Pharmaceutical Industries, Gland Pharma, Lupin and others traded sharply lower on Wednesday after the US President Donald Trump said he will soon announce a ‘major’ tariff on pharmaceutical imports. Fall in pharma stocks dragged the Nifty Pharma index more than 2% lower.
Speaking to an event at the National Republican Congressional Committee, Trump said the tariff will incentivize drug companies to move their operations to the US, Reuters reported.
President Donald Trump’s sweeping reciprocal tariffs on dozens of countries are scheduled to take effect on Wednesday, including a substantial 104% duty on Chinese goods. This move marks an escalation in the ongoing global trade conflict, even as the administration signals a willingness to engage in negotiations with select nations.
The latest round of tariffs, announced by Trump on April 2 and referred to as “Liberation Day,” forms part of his broader “reciprocal” trade strategy. Under this plan, the US will impose a minimum tariff of 10% on nearly all of its trading partners, with significantly higher rates targeting countries that maintain trade surpluses with the US. The baseline 10% tariff was implemented on Saturday.
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