Under Donald Trump's leadership, the U.S. followed an 'America First' policy. As part of this, higher tariffs were imposed on products from other countries, bringing significant changes to global trade. In the past, Trump had imposed additional taxes on imports from China, India, Mexico, and European nations. Recently, he announced plans to impose tariffs on pharmaceutical products and semiconductors. Following this, the Indian stock market witnessed a sharp decline, and pharma stocks that showed gains in the previous session fell into losses — mainly due to Trump’s latest announcement.

With Trump announcing that tariffs will soon be imposed on pharmaceutical products, the Nifty Pharma index fell by 4.2%. During intraday trading, the index hit a low of 20,521 points. The U.S. is likely to levy new taxes on pharma products manufactured in India. Financial experts predict that Indian pharma companies might incur losses due to this move. The sector, which remained stable earlier, saw a sudden drop after Trump’s statements. Major pharma companies like Aurobindo Pharma, IPCA Laboratories, Lupin, Biocon, Cipla, Divi's Laboratories, Dr. Reddy’s, and Sun Pharma witnessed significant losses.

Due to frequent tariffs imposed by the U.S. on foreign products, global trade relations continue to be impacted. Since India’s pharma industry is one of the largest globally, increased taxes in the U.S. could severely affect exports. According to economists, until the U.S. government officially announces the decision, it’s unlikely that pharma stocks will stabilize. However, whether this decline will have a long-term impact or not will become clear soon.