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Wednesday’s signing of a proclamation by the U.S. President Donald J. Trump to impose a 25% tariff on imports of automobiles and certain automobile parts effective April 3 follows a similar measure for steel and aluminium and bound to turn the spotlight on pharmaceutical imports.
On Thursday, shares of 14 out of the 20 drugmakers that make up Nifty Pharma ended lower. The pharma index closed less than 1% lower. Dr. Reddy’s Laboratories, Sun Pharma, Natco Pharma, Lupin, Abbot India, Biocon, Ipca Lab, Divis Labs, Gland Pharma, Alkem and Zydus Life figured in the list of 14 companies.
The six pharma companies whose shares closed higher were Glenmark, Mankind, Laurus Labs, Aurobindo Pharma, Cipla and Granules, NSE data showed.
Reciprocal tariff is what the U.S. President has threatened to impose on countries exporting pharmaceuticals to the U.S. beginning April 2 as a tool to boost domestic manufacturing. Automobiles or pharmaceuticals the expectations behind the proposals imposing high tariff is the move will force manufacturers to evaluate setting up production facilities in the U.S.
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Rajya Sabha member B. Parthasaradhi Reddy on Wednesday, drawing attention of the House to the severe threat posed to the Indian pharmaceutical industry by the proposed reciprocal tariffs, said the U.S. accounts for over 31% of India’s total pharmaceutical exports. The U.S. is the largest importer of Indian pharmaceutical products and any reciprocal tariff imposed by the U.S. would significantly disrupt this thriving trade, said Mr. Reddy, who is founder and chairman of Hetero Group of Companies.
Urging the Government of India to treat the issue with utmost urgency to safeguard the interests of the pharmaceutical industry, he stressed on multiple measures, including diplomatic engagement and pursuing a free trade agreement with the U.S. He also called for financial support to Indian pharma companies through special incentives, subsidies, tax breaks and other measures that could help mitigate the impact of U.S. tariffs and maintain their global competitiveness besides measures focused on enhancing operational efficiency and innovation.
Published – March 27, 2025 09:26 pm IST
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U.S. tariff on automobiles turns spotlight on India pharma
