Indian Pharma Stocks Lupin, Aurobindo Pharma and Other Slipped as Trump Hints at Imminent Tariffs

On Tuesday, June 17, 2025, Pharma stocks in India took a sharp hit, following comments from U.S. President Donald Trump suggesting that tariffs targeting the sector could be announced shortly. Speaking aboard Air Force One, Trump said tariffs on pharmaceuticals were “coming soon,” sparking a wave of investor concern.

Nifty Pharma Dropped Over 2%

The Nifty Pharma index dropped as much as 2.5% during the trading session. Granules India led the losses, plunging by nearly 4%, while shares of Lupin, Aurobindo Pharma, and Natco Pharma each fell approximately 3%.

Pharma Tariff Background

Back in April 2025, President Trump had excluded the pharmaceutical sector from his sweeping tariff announcements across 60 countries. However, he had warned at the time that pharma-related duties could eventually be imposed at levels “never seen before.”

“Pharma tariffs are going to come in at levels you haven’t really seen before,” Trump had stated. “We’re looking at pharmaceuticals as a separate category. The announcement will come in the near future—it’s currently under review.”

At present, the U.S. Commerce Department is examining pharmaceutical imports under Section 232 of the Trade Expansion Act, a provision that assesses whether foreign goods threaten national security. Unlike baseline and reciprocal tariffs, Section 232 tariffs can be applied independently and more aggressively.

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