Nifty Pharma Index Slides Over 2% Amid US Tariff Threat

Wednesday’s trading session saw a steep decline in pharma stocks on the Mumbai bourse after traders reacted to a proposed tariff regime from the United States. President Donald Trump announced that, beginning August 2028, a 100 percent tariff will be applied to all generic drug imports, escalating to 200 percent in August 2029.

The Nifty Pharma benchmark on the National Stock Exchange fell more than two percent, pulling down the overall market. At 10:30 a.m., the following companies recorded the biggest losses: Gland Pharma (‑4.62%), Piramal Pharma (‑3.92%), Lupin (‑3.81%), J B Chemicals (‑3.87%), Ajanta Pharma (‑3.03%), Cipla (‑1.87%), Menkind Pharma (‑1.69%), Dr. Reddys Labs (‑1.49%), Sun Pharma (‑1.00%) and Biocon (‑1.01%).

Trump’s social‑media statement also mentioned that from August 1, 2026, generic medicines entering the United States will enjoy a two‑year tariff‑free period, after which a 100 percent duty will be imposed for one year, potentially rising to 200 percent thereafter. The move is intended to bring generic drug production back to U.S. soil, with firms required to install manufacturing plants or face the higher tariffs.

He emphasized that the existing framework for patented, branded and innovative drugs will remain untouched, aiming to safeguard American consumers while boosting local drug manufacturing.

In India, the Sensex decreased by 658 points (‑0.85%) to 76,811 and the Nifty slipped 182 points (‑0.77%) to 24,002.