Pharma Stocks Plunge 1.8% as Trump Slaps 100% Tariff on Branded Drugs
Pharmaceutical markets reel as former President Trump drops tariff bomb on branded medications.
The 100% Hammer
Trump's surprise announcement sent shockwaves through healthcare sectors—branded drug manufacturers facing immediate doubling of import costs. Market reactions were swift and brutal.
Sector Bloodbath
Pharma stocks tanked 1.8% within hours of the declaration. Investors scrambled to reposition portfolios while analysts predicted prolonged volatility across healthcare equities.
Regulatory Roulette
The move represents the latest escalation in drug pricing wars—though Wall Street analysts noted the timing conveniently distracts from quarterly earnings disappointments elsewhere. Because nothing fixes economic concerns like starting new trade wars.
Pharma giants now face their toughest pricing pressure in decades—while patients brace for the inevitable pass-through costs.
Also read
Markets slip as Trump’s pharma tariffs, IT concerns weigh on investor sentiment
Choice Institutional Equities analyst Maitri Sheth warned that the tariff could negatively impact Indian pharmaceutical exporters, as the US represents their largest market, accounting for approximately 35 per cent of exports valued at $10 billion in FY25. “While the tariff primarily targets branded drugs, there is ambiguity over whether complex generics and specialty medicines might also be affected,” Sheth noted.
The tariff announcement includes exemptions for companies that have already begun construction on U.S. manufacturing facilities or have such facilities under development. This provides some relief for firms with existing American operations, though the broader sector remains vulnerable to the policy change that aims to boost domestic U.S. manufacturing and reduce import dependence.
Published on September 26, 2025
Companies to follow- Sun Pharmaceuticals Industries Ltd
