Indian pharmaceutical stocks slipped by up to 2% on Wednesday after US President Donald Trump warned of steep hikes in tariffs on imported medicines, dragging down major companies such as Sun Pharma, Cipla, Dr Reddy’s Laboratories, and Lupin.

Trump said initial duties would start small but could rise sharply to 150% and eventually 250% to boost domestic manufacturing. He also hinted at tariffs on semiconductors and chips. The US is reviewing its pharmaceutical sector to shift more production home, citing economic and national security concerns.

Industry experts warn that such tariffs could disrupt supply chains, increase drug costs, and deter investment. Drugmakers are already facing pressure from Trump’s drug pricing initiatives, which they argue hurt profitability and research funding.

Recently, Trump urged 17 pharma companies to cut US drug prices by 29th September, including offering all medicines to Medicaid patients at the lowest price in any developed country.

For Indian drugmakers, which heavily depend on the US market, these developments could weigh on sentiment and keep pharmaceutical stocks under pressure.

At 12:10 PM, Sun Pharma was down 0.83% at Rs 1,618.60, Cipla fell 1.39% to Rs 1,478.90, and Lupin slipped 0.79% to Rs 1,849.80 on NSE.

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