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What is the story about?
US President Donald Trump on Wednesday, July 22, announced a timeline for imposing tariffs on generic pharma drugs being brought into the US starting August 1, 2026. This puts Indian Pharma companies, Sun Pharma, Lupin, Cipla, among others in the spotlight.
In a post on Truth Social, the US President wrote that all generic drugs being brought into the US will have no tariffs for a two year period. Following which, the tariff will be raised to 100% from August 1, 2028 and then to 200% by August 1, 2029.
"This is being done to reshore generic Pharmaceutical production into America, with a penalty to those companies that decide not to build plant and equipment within the stated period of time given to them," Trump's post read further.
Trump's earlier tariffs in this sector pertained to branded and patented drugs, the policy of which has been left unchanged. The earlier policy had left out generic drugs, as nearly 90% of the US prescriptions comprise of them.
The Trump Administration had begun a probe of the pharmaceutical industry on national security grounds under Section 232 of the Trade Expansion Act. It also launched a direct-to-consumer discount drug sales platform known as "Trump RX".
Multiple Indian companies, such as Dr. Reddy's, Sun Pharma, Aurobindo Pharma, Cipla, and Lupin do have manufacturing facilities in the US.
Dr. Reddy's has facilities in New Jersey, Georgia, and Louisiana, which manufacture generic cancer drugs to over-the-counter painkillers.
Aurobindo also has a plant at New Jersey, while Cipla has manufacturing presence in the US through its subsidiary InvaGen Pharma and Exelan Pharma, which it had acquired earlier.
The Nifty Pharma index is among the best performing sectoral indices so far in 2026 with gains of 15%. Stocks like Gland Pharma, Laurus Labs, Sai Life Sciences, Aurobindo Pharma, Wockhardt, And Torrent Pharma have gained between 30% to 45% so far this year. 17 out of the 20 Nifty Pharma constituents, barring Abbott India, Dr. Reddy's Laboratories and Cipla, have delivered positive returns so far this year.
This is a breaking news development and will be updated with more.
In a post on Truth Social, the US President wrote that all generic drugs being brought into the US will have no tariffs for a two year period. Following which, the tariff will be raised to 100% from August 1, 2028 and then to 200% by August 1, 2029.
"This is being done to reshore generic Pharmaceutical production into America, with a penalty to those companies that decide not to build plant and equipment within the stated period of time given to them," Trump's post read further.
Trump's earlier tariffs in this sector pertained to branded and patented drugs, the policy of which has been left unchanged. The earlier policy had left out generic drugs, as nearly 90% of the US prescriptions comprise of them.
The Trump Administration had begun a probe of the pharmaceutical industry on national security grounds under Section 232 of the Trade Expansion Act. It also launched a direct-to-consumer discount drug sales platform known as "Trump RX".
Multiple Indian companies, such as Dr. Reddy's, Sun Pharma, Aurobindo Pharma, Cipla, and Lupin do have manufacturing facilities in the US.
Dr. Reddy's has facilities in New Jersey, Georgia, and Louisiana, which manufacture generic cancer drugs to over-the-counter painkillers.
Aurobindo also has a plant at New Jersey, while Cipla has manufacturing presence in the US through its subsidiary InvaGen Pharma and Exelan Pharma, which it had acquired earlier.
The Nifty Pharma index is among the best performing sectoral indices so far in 2026 with gains of 15%. Stocks like Gland Pharma, Laurus Labs, Sai Life Sciences, Aurobindo Pharma, Wockhardt, And Torrent Pharma have gained between 30% to 45% so far this year. 17 out of the 20 Nifty Pharma constituents, barring Abbott India, Dr. Reddy's Laboratories and Cipla, have delivered positive returns so far this year.
This is a breaking news development and will be updated with more.
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