Shockwaves in Stock Market: Trump’s New Tariffs Erode ₹2 Lakh Crore from Indian Pharma
Trump: Due to the new decision, the shares of Indian pharmaceutical companies have fallen again. Trump has planned to impose tariffs of up to 25% on the import of automobiles, semiconductors and medicines. However, he has not clarified on which countries this tariff will be applicable. Earlier, Trump had announced a 25% tariff on steel and aluminum, which will come into effect from March. Due to Trump’s tariff threat, the index of shares of pharmaceutical companies, Nifty Pharma, has fallen by more than 13% this year. Last week, when Trump proposed his reciprocal tariff plans, this index slipped by about 6%.
Rs 2 lakh crore lost! – This decision will have the biggest impact on India, Japan and the European Union. According to Bloomberg data, investors have lost more than Rs 2 lakh crore in Nifty Pharma this year due to Trump’s tariff threat.
What did Trump say on tariff?
According to a report by news agency Reuters, Trump said on medicines and semiconductor chips, “It will be 25% and more, and it will increase significantly over the course of a year.” He said he wanted to give companies time to come to the US before announcing new import duties. However, despite potential concerns of US tariffs, analysts remain optimistic about pharmaceutical companies.
Why are Indian pharmaceutical companies important to the US?
According to HSBC, given the important role of generic drugs in the US healthcare system, the impact of such tariffs will be minimal. Indian pharmaceutical companies supply 60% of generic drugs to the US. Indian pharmaceutical companies play an important role in reducing healthcare costs here. HSBC estimates that the market will remain focused on the long-term growth prospects of this sector.
Which stocks fell the most?
On Wednesday, Nifty Pharma was seen trading down by 3.19%. Abbott, Lupin and Ajanta Pharma are seeing the biggest decline.
Aurobindo Pharma saw a decline of up to 9.5% during intraday. However, with the recovery in the market, this stock also saw recovery from the lower levels. The US FDA has issued objections to the company’s subsidiary after investigation.
Zydus Life Sciences stock was seen slipping up to 6.45% in early trade. While Lupin saw a decline of 6%. Dr Reddy’s Labs and Ajanta Pharma saw a decline of more than 2% during early trading.
