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Trump’s 100% Tariff Hits Indian Pharma, Wipes Billions in Market Cap | Indian Pharma’s 34.5% US Export Share Under Tariff Threat
1. Trump’s 100% Pharma Tariff Announcement
1.1 Donald Trump announced 100% tariff on branded & patented pharmaceutical imports.
1.2 Effective from October 1, 2025.
1.3 Exemption: Companies building plants in the US (construction started/groundbreaking).
1.4 No clarity yet on implementation mechanism from Trump or White House.
2. India’s Pharma Exports — Big Picture
2.1 India exported $30B worth of drugs & pharmaceuticals in FY25.
2.2 March 2025 saw a 31% YoY surge in pharma exports.
2.3 August 2025 exports: $2.51B, up from $2.35B in Aug 2024 (+6.94%).
2.4 India ranks:
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3rd globally by volume.
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14th globally by value.
3. India–US Pharma Trade Snapshot (FY25)
📊 Table: India’s Pharma Exports (FY25)
| Metric | Value | Change YoY | Share |
|---|---|---|---|
| Total Pharma Exports | $30B | +31% (Mar) | 100% |
| Exports to US | $10.5B | +20.43% | 34.51% |
| Aug 2025 Exports (Global) | $2.51B | +6.94% | – |
| H1 2025 Shipments (Global) | $3.7B | – | – |
4. Impact on Indian Pharma Companies
4.1 Generics spared → India’s main export line remains safe.
4.2 Branded/patented segment exposed to 100% cost escalation.
4.3 Key companies with 30–50% revenue dependence on US:
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Sun Pharma
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Cipla
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Zydus Lifesciences
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Dr. Reddy’s
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Aurobindo Pharma
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Gland Pharma
5. Stock Market Reaction (Sept 26, 2025)
📉 Nifty Pharma Index: down 2.42% (21,445.50 intraday low).
📊 Table: Pharma Stock Impact
| Company | Fall (%) | Price (₹) | Note |
|---|---|---|---|
| Sun Pharma | -4.87% | 1,548 | 52-week low |
| Gland Pharma | -4.70% | 1,880 | Sharpest fall |
| Biocon | -3.68% | 342.85 | – |
| Cipla, Zydus, Dr. Reddy’s, Laurus, Divis, Ipca, Torrent, Glenmark | -0.8% to -3.2% | – | Broad decline |
6. Winners vs Losers of Trump’s Tariff Move
Winners
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US Domestic Pharma Manufacturers: Benefit as foreign competition becomes costlier.
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Indian Generic Drug Exporters: Tariffs exclude generics → safe for now.
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Countries with Local US Plants: Pharma companies already manufacturing in US avoid tariffs.
Losers
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Indian Branded/Patented Drug Exporters: Face 100% tariff → price uncompetitive in US.
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Indian Pharma Giants with US Dependency: Sun Pharma, Cipla, Zydus, Dr. Reddy’s, Aurobindo, Gland Pharma (30–50% of revenues from US).
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Indian Stock Market Investors: Pharma index already fell 2.42%, wiping out billions in market cap.
7. Key Takeaways
7.1 Trump’s tariff puts $10.5B Indian pharma exports to US at risk.
7.2 Generic drug exports shielded, but branded segment hit hard.
7.3 Indian pharma companies’ US revenue dependency = biggest vulnerability.
7.4 Stock market already reacting with sharp pharma sell-off.
Disclaimer
This article has been prepared for informational purposes only by The Profit India. It does not constitute investment advice. Readers are advised to consult certified financial experts before making investment decisions.
