Sun Pharma, Cipla and Other Pharma Shares Fall Up to 3% After Trump Announces 100-200% Tariffs on Generics Drugs from 2028

Sun Pharma, Cipla, and other pharmaceutical stocks have seen a decline following US President Donald Trump's announcement of a plan to implement tariffs on imported generic drugs starting from 2028, as per the Economic Times news report.  

Trump's Tariff Plan Revealed 

On July 22, 2026, pharma stocks including Sun Pharma and Cipla fell up to 2.5% following President Trump's detailed tariff plan. 

Trump outlined that imported generic drugs would remain tariff-free until August 2028. Afterward, tariffs will rise to 100% by August 2028 and escalate to 200% by August 2029. This announcement marks a major shift as generic drugs had previously been exempt from such measures. 

Share Price Decline Following the Announcement 

Sun Pharma shares decreased by 2% to ₹1,924 on the BSE, and Cipla shares dropped 2.5% to ₹1,396. Lupin also saw a fall of 2.5%, while Dr Reddys Laboratories experienced a slight decline, dipping over 1%.  

This announcement came through a post on Truth Social by President Trump. The proposal aims to encourage US-based manufacturing, aligning with the "America First" agenda. 

Broader Implications 

Trump's statement emphasises a push to boost local production within the US during the given transition period. Pharmaceutical companies that do not set up US-based manufacturing will face severe import duties.  

This plan forms part of a wider strategy by the Trump administration to alter the pharmaceutical supply chain and decrease dependence on foreign manufacturing. 

Read More: NATCO Pharma Increases Stake in Adcock Ingram to 49% With ₹1,060 Crore Acquisition! 

Conclusion 

The stocks of Sun Pharma and Cipla fell over 2% following President Trump's announcement of enhanced tariffs on generic drugs from 2028.  

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