Sun Pharma Crashes to 52-Week Low as Trump's 100% Pharma Tariff Rattles Indian Drug Sector

Indian pharmaceutical stocks witnessed sharp selloffs on Friday, September 26, 2025, after US President Donald Trump announced sweeping 100% tariffs on branded and patented drug imports, sending ripples of concern across the sector despite limited direct impact on India's generic-focused exports. Sun Pharma Leads Sector Decline : Sun Pharmaceutical Industries, India's largest drugmaker, bore the brunt of the market reaction, plummeting nearly 5% to hit a fresh 52-week low of Rs 1,547 during intraday trading. The stock, which closed at Rs 1,627.40 the previous day, extended losses as investor sentiment turned bearish following Trump's tariff announcement. The broader pharmaceutical sector mirrored Sun Pharma's weakness, with the Nifty Pharma index crashing over 2.6% in early trade, marking all 20 constituent stocks in negative territory. Major drugmakers including Biocon (-3.3%), Zydus Lifesciences (-2.8%), Aurobindo Pharma (-2.4%), Dr. Reddy's Laboratories (-2.3%), Lupin (-2%), and Cipla (-2%) all registered significant declines. Trump's Tariff Announcement Triggers Panic : The market rout was triggered by President Trump's declaration on Truth Social, where he announced: "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". Trump clarified that companies actively constructing manufacturing facilities in the US would be exempt from these punitive duties. The announcement represents Trump's latest escalation in trade tensions, extending beyond pharmaceuticals to include 50% tariffs on kitchen cabinets and bathroom vanities, and 25% duties on heavy trucks. This marks a shift from country-specific to product-specific tariff strategies, industry experts noted. Limited Direct Impact on Indian Generics : Despite the market panic, industry analysis suggests the immediate impact on Indian pharmaceutical exports may be limited. India's pharmaceutical exports to the US, worth approximately $10.5 billion in fiscal 2025, predominantly consist of generic medicines rather than branded or patented drugs. The Indian Pharmaceutical Alliance clarified that Trump's proposed tariffs target patented and branded drugs, segments where Indian companies have relatively smaller exposure. Pharmexcil Chairman Namit Joshi emphasized that "India has long been a cornerstone of the global supply chain for affordable, high-quality medicines, supplying nearly 47% of the US's pharmaceutical requirements," primarily through generic formulations. Market Sentiment vs Reality : While the direct impact may be minimal, market participants expressed concerns about potential policy escalation. Analysts warned that Trump's tariff approach could eventually extend to complex generics, biosimilars, or specialty medicines – segments where Indian companies are increasingly active. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted: "India being an exporter of generic drugs is unlikely to be impacted by this. But perhaps the president's next target can be generic drugs. This decision may have a sentimental impact on pharmaceutical stocks". The selloff reflects broader investor anxiety about trade policy uncertainty, with the US representing India's largest pharmaceutical export market, accounting for over one-third of total pharma exports. Sector Under Technical Pressure : Beyond fundamental concerns, technical indicators had already signaled weakness in pharmaceutical stocks. The Nifty Pharma index was struggling near key support levels even before the tariff announcement, with Friday's decline accelerating existing downward momentum. Some technical analyses suggest pharmaceutical stocks could face corrections of up to 30% if current support zones fail to hold, particularly for companies with higher US exposure in branded segments. Broader Market Impact : The pharmaceutical sector's weakness contributed to overall market declines, with benchmark indices extending their losing streak for the fifth consecutive session. The BSE Healthcare index dropped 1.39% to 43,376.04, while continued foreign institutional investor selling added to negative sentiment. Market participants are closely monitoring whether Trump's tariff strategy will expand beyond current categories, potentially affecting India's $30+ billion pharmaceutical export industry. For now, while generic drug formulations remain exempt, uncertainty over future policy directions continues to weigh on sector valuations and investor confidence. - MarketForesee Research Desk --------------------------------------------------------------------------------------------------------------------------------- Sun Pharma stock price | Trump pharma tariffs | Indian pharmaceutical stocks | Nifty Pharma index | branded drugs tariff | generic medicines India | Sun Pharma 52-week low | US drug imports | pharmaceutical sector decline | Trump 100% tariff announcement | Indian drug exports | pharma stocks crash | Biocon Cipla Dr Reddy's | US pharma market | Indian generics | pharmaceutical trade policy | stock market pharma | Sun Pharma share price today | pharma sector analysis | Trump tariff impact India