NEW DELHI: In his latest salvo against US trading partners, US President Donald Trump threatened aggressive tariffs on drug imports, raising fresh concerns for the export-intensive domestic pharma sector. “Pharma is going to be tariffed at a very, very high rate, like 200%,” Trump said late on July 8. Tariffs on pharmaceuticals would come into effect after a grace period of at least a year, he added. Domestic pharma stocks, including Sun Pharma, Aurobindo, and Lupin, were fairly resilient, closing largely flat, while Dr Reddy’s was down by over 1% on BSE on Wednesday.India’s pharma exports to the US are nearly $10 billion, while it services about 35% of US prescriptions with affordable generics. Analysts say domestic biggies, including Aurobindo, Sun Pharma, Lupin, and Cipla, which generate significant revenue ranging from 35 to 50% from the US, could be hit if tariffs are implemented, adding, companies may need to recalibrate their US strategy. Washington may soon issue a separate announcement on the pharmaceutical sector.
