Donald Trump Says Pharma Tariffs 'Coming Soon'; Indian Drug Stocks Fall Up To 4%

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US Pharma Tariffs: Granules India becomes the top loser falling up to 4%, while Aurobindo, Natco and Lupic was down 3% each.
US President Donald Trump on June 17 said tariffs on the pharmaceutical sector are 'coming soon". Following comments, which Trump made while speaking to reporters on board the Air Force One, India's pharma stocks declined up to 4%.
The Nifty Pharma index declined as much as 2.5% following the Trump comments.
Granules India became the top loser falling up to 4%, while Aurobindo, Natco and Lupic was down 3% each.
This isn't the first warning — back in April, after imposing reciprocal tariffs on 60 countries (excluding pharma at the time), Trump had hinted that pharma tariffs would come in at 'never seen before" levels and were under active review.
'Pharma tariffs are going to come in at levels you haven't really seen before. We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near future, and not too distant future. It's under review right now," Trump had said back in April.
The US Commerce Department is currently investigating pharma imports under Section 232, which evaluates the impact of imports on national security. If such tariffs are imposed and companies are unable to pass on the cost, analysts at Citi estimate Indian firms with high exposure to the US generics market could see a 9%-12% one-time hit to their Ebitda.

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