The Indian pharmaceutical sector took a major hit on Wednesday, with the Nifty Pharma Index tumbling over 2%. The sudden market crash was triggered by US President Donald Trump’s latest announcement regarding a strict, phased tariff layout on generic drug imports.
According to the newly outlined plan, the duties on imported generic medicines will remain at zero percent for the next few years. However, in a move that has spooked investors, these tariffs are scheduled to spike sharply to a staggering 100% by the year 2028.
This looming threat of heavy taxation caused immediate turbulence on the trading floor. The sectoral plunge was heavily led by industry giants, who saw significant drops during intraday trading:
- Sun Pharma
- Cipla
- Dr. Reddy’s Laboratories
Each of these heavyweight pharmaceutical companies witnessed their stock prices drop by up to 2.5% as the market digested the long-term implications of the US policy shift.
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