Mumbai: The global pharmaceutical sector witnessed a sharp downturn after U.S. President Donald Trump announced a 100% tariff on imports of branded and patented medicines, effective October 1, 2025. The announcement sent shockwaves across international markets, with Indian pharmaceutical stocks bearing the brunt of investor anxiety.
On the domestic front, the BSE Sensex opened sharply lower, shedding nearly 400 points, while the Nifty index slipped below the critical 24,800 level. The Indian pharmaceutical index itself plunged by 2.3%, marking one of the steepest declines in recent months. Companies such as Sun Pharmaceutical Industries were among the hardest hit, with share prices falling by 3.4%, reflecting heightened investor concerns over export earnings and future trade restrictions.
Analysts noted that the tariffs specifically target branded drugs, leaving generic exports partially insulated. However, uncertainty looms over whether more complex generics and biosimilars could be subjected to similar duties in the future. Industry experts warn that prolonged trade barriers could disrupt global supply chains and slow down growth in key emerging markets.
The impact was not limited to India. Internationally, pharmaceutical giants experienced turbulence, though the magnitude varied depending on their U.S. manufacturing footprint. Johnson & Johnson saw a modest decline of 0.59% in its stock price, while CSL Corporation in Australia suffered a market value loss of $2.4 billion, despite assurances that its extensive U.S.-based production would mitigate the impact. Asian markets also felt pressure, with companies such as Sumitomo Pharma and Chugai Pharmaceutical seeing noticeable declines.
Investors and industry stakeholders are now closely monitoring policy developments, with many reassessing strategies for production, exports, and diversification. Analysts predict that this move could accelerate shifts in pharmaceutical manufacturing to the United States, reshaping global trade patterns in the sector over the coming years.
The unfolding situation highlights the fragile interplay between geopolitics and international trade in high-value industries such as pharmaceuticals, signaling a period of heightened vigilance for both investors and market regulators worldwide.