Indian pharmaceutical businesses, including Sun Pharma Ltd., Aurobindo Pharma Ltd., Gland Pharma Ltd., Lupin Ltd., and Cipla Ltd., slid up to 5% on Friday, 26 September, after US President Donald Trump proposed a 100% duty on branded and patented medications entering the US beginning 1 October.

Eight of the top ten losers on the Nifty 500 index are pharmaceutical firms, including Natco Pharma, Wockhardt, Caplin Point, Alembic Pharma, and Laurus Labs, which lost up to 5% at the start of trading on Friday.

However, the policy will not apply to corporations that are currently establishing medication manufacturing plants in the United States or that already have plants.

In August, Trump warned that tariffs on pharmaceutical imports into the United States might eventually reach 250%. He had stated that he would start with a “small tariff” and progressively increase it to 150%, then 250%.

The US Commerce Department was investigating the pharmaceutical sector for national security reasons under Section 232. The most recent investigation also adds surgical masks, N95 respirators, gloves, and other medical devices, such as syringes and needles, to the list of goods that may face increased tariff rates.

“Pharmaceuticals, such as prescription drugs, over-the-counter drugs, biologics, and specialty drugs, will not be covered under this investigation as those imports are being examined in a separate Section 232 investigation,” the Commerce Department said.

At 11:49 am, the shares of Natco Pharma were trading 3.82% lower, Laurus Lab 6.01% lower, Dr Reddy’s 1.26% lower, Aurobindo Pharma 1.15% lower, and Piramal Pharma 3.49% lower on NSE.

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