US Tariffs on Generic Drugs Sink Pharma Stocks; Lupin Falls

New Delhi, Jul 22 (PTI) Pharma stocks declined on Wednesday, with Lupin tumbling over 4 per cent, after US President Donald Trump announced plans to impose 100 per cent tariffs on generic medicine imports from August 2028 for one year and 200 per cent thereafter.

India is the largest exporter of generic drugs to the US.

Shares of Lupin tanked 4.21 per cent, Aurobindo Pharma declined 1.99 per cent, Dr Reddys Lab by 1.95 per cent, Glenmark Pharma by 1.49 per cent, Alkem Lab by 1.43 per cent, Cipla by 1.08 per cent, Sun Pharma by 0.98 per cent and Biocon by 0.57 per cent on the BSE.

In a post on Truth Social, Trump said beginning August 1, the US will continue to have a zero per cent tariff on all generic drugs brought into the country for two years, after which it will be raised to 100 per cent for one year, and 200 per cent thereafter.


"Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for two years, after which the TARIFF will be raised to 100 per cent for one year, and 200 per cent thereafter," Trump said.

"This is done to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them," Trump said.

The president said the objective of this policy is to protect the people of the United States.

"Renewed concerns over potential US tariffs on pharmaceutical imports weighed on sentiment," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Vinod Nair, Head of Research, Geojit Investments Limited, said, "Pharmaceutical stocks came under pressure amid renewed uncertainty over proposed US tariff measures on pharmaceutical exports."