US President Donald Trump has stated that the country will soon announce “major tariffs” on pharmaceutical imports, as reported by Reuters.
According to the President, the move will incentivize drug companies to relocate their operations to the US.
The announcement is expected as the previously declared “discounted” reciprocal tariffs are due to take effect on 9 April 2025, as reported in the Business Standard.
Despite not naming specific countries, India and China, the two principal suppliers of generic drugs to the US market, are expected to be significantly affected.
Trump also stated that the new tariffs would result in drug companies swiftly returning to the US due to its substantial market share.
He noted that the companies would leave other regions, including China, once the tariffs were in place.
Following the imposition of an additional 50% tariff on China, which was requested to lower its retaliatory tariff of 34% but did not do so, China’s total tariffs now stand at 104%.
Trump has consistently championed increasing domestic pharmaceutical production and previously vowed to implement tariffs to bolster the country’s manufacturing capacity.
Although he alluded to the announcement of tariffs on pharmaceutical imports on 24 March 2025, he did not provide a specific timeline.
According to The Times of India, Indian pharmaceutical stocks have suffered in response to the tariff threats. The Nifty Pharma index fell by 1.7%, contributing to a broader decline in the Nifty 50 benchmark.
Lupin, Gland Pharma and Zydus Lifesciences saw significant losses, with shares dropping between 3% and 5%. Sun Pharma and Cipla also experienced declines.