Sun Pharma, Lupin & More Indian Pharma Stocks in Focus as Trump Announces 100% Tariffs

Indian pharmaceutical stocks such as Sun Pharmaceutical Industries, Lupin, and more will be closely watched on Friday after US President Donald Trump announced a new 100% tariff on branded or patented drugs starting October 1, 2025.

Trump clarified that exemptions will apply if a company is actively building a pharmaceutical manufacturing facility in the US. “IS BUILDING” will mean that construction has either broken ground or is currently underway.

The US President stated, “Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America. ‘IS BUILDING’ will be defined as, ‘breaking ground’ and/or ‘under construction.’ There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started.”

Implications for Indian Pharma

The US is one of the largest markets for Indian drugmakers, particularly for generics and speciality pharmaceuticals. While many Indian companies already operate US-based facilities, the latest mandate could push others to accelerate investments in local manufacturing to avoid higher tariffs.

Stocks such as Sun Pharma, Lupin, Dr. Reddy’s, and Cipla may see investor reactions given their significant exposure to the US market.

On Thursday (Sep 25), Lupin, Dr. Reddy’s and Cipla closed by 1.30%,1.80% and 1.96% down, respectively, while Sun Pharma ended the day down by 0.13%.

Also Read: Best Pharma Stocks in October 2025!

Conclusion

Trump’s tariff decision adds fresh uncertainty for Indian pharma exporters. Companies with existing or under-construction US facilities may benefit, while others could face margin pressures if tariffs are implemented. Investors will keep a close eye on company announcements regarding US manufacturing expansion in the coming weeks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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