Trump Imposes Tiered Generic Drug Tariffs Raising Indian Pharma Concerns

Trump announced a new tariff framework targeting generic drug imports, setting three possible rates—0%, 100% and 200%—to be applied from 2028, aiming to protect domestic manufacturers. The policy follows a recent branded drug tariff that took effect Friday, signaling a broader trade shift.

Indian Pharma Stocks such as Sun Pharma and Dr. Reddy’s saw sharp sell‑offs after the plan was detailed, with analysts warning of reduced export margins and heightened cost pressures. Investors trimmed exposure, pushing share prices down 5% to 7% in the session.

Nifty Index fell to 23,996 in the closing bell as market participants priced in the tariff threat, while crude oil prices rose to $93 a barrel, reflecting broader risk sentiment. Oil futures climbed 2% on the day, adding to the volatility.

Consumers could face higher prices for common medicines as the tariff escalates, with industry experts estimating a potential cost increase of up to 20% on imported generics once the 2028 deadline hits. Health NGOs warn that price hikes may limit access for low‑income patients.