Indian pharma stocks fell sharply on 2 April after reports emerged that President Donald Trump may impose 100% tariffs on branded pharmaceutical imports. Companies without US pricing deals or domestic manufacturing commitments are most at risk. Markets stay shut on 3 April for Good Friday.

The selloff hit hard. Nifty Pharma shed more than 5% on the day, with all 20 constituents trading in the red.

Bloomberg flagged that the Trump administration may announce tariffs on drugmakers yet to guarantee low drug prices in the US. The levies could run anywhere from 100% to 200%, tied to a Section 232 probe targeting firms that haven’t moved production to American soil. Generics and API makers get a pass. Global majors like Pfizer and Eli Lilly have secured three-year tariff relief through US manufacturing/pricing deals, leaving smaller firms most exposed.

Sun Pharma is the most exposed Indian pharma company to these tariffs; around 20% of its revenue comes from innovative medicines. Its key products are made in South Korea, the EU, or the US, regions that have agreed to a 15% pharmaceutical tariff cap with Washington. That keeps its worst-case tariff exposure capped at 15%.

All three stocks will be in focus on Monday, 6 April, as tariff clarity from Washington remains awaited.

Tired of missing hot stocks? Tradz by EquityPandit provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!