Indian pharmaceutical stocks suffered a sell-off today after U.S. President Donald Trump announced a sweeping new round of tariffs, including a punishing 100% duty on branded drugs. Post the announcement, the Nifty Pharma index was down up to 3%.

Leading the decline were major exporters to the American market, with Laurus Labs Ltd. falling over 7% to ₹823.10. Natco Pharma Ltd. fell up to 5% to ₹802.90. Biocon Ltd. fell over 3%. Even industry giant Sun Pharmaceutical Industries Ltd. saw its stock price slide by nearly 3% as investors panicked over the future of U.S. sales.

The tariff bombshell was dropped by President Trump, who cited national security as the reason for the fresh barrage of protectionist measures. The new duties, which also include 25% levies on heavy-duty trucks and 50% on kitchen cabinets, are set to take effect on October 1.

The most critical measure for the pharmaceutical industry is the 100% tariff on any branded or patented pharmaceutical product imported into the U.S. The move aims to force drug manufacturing back onto American soil, with the President explicitly stating that the duty will be waived only if a company has “broken ground” on a new U.S. factory.

Generic medicines, which are cheaper and account for the bulk of Indian shipments to the U.S., are currently exempt from the 100% tariff.

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