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Indian Pharma stocks may react to Donald Trump's 200% tariff threatIndian Pharma stocks were sulking on Tuesday after brokerage firm Macquarie issued a double-downgrade on Aurobindo Pharma and a downgrade on Dr. Reddy's Laboratories and also revised the price targets sharply lower for five drugmakers.By Hormaz Fatakia   July 9, 2025, 4:58:51 AM IST (Published)2 Min ReadShares of India's drugmakers, led by Sun Pharma Ltd., along with Lupin Ltd., Cipla Ltd., Aurobindo Pharma Ltd, Gland Pharma Ltd., and Dr. Reddy's Laboratories Ltd,. among other names may see a reaction on Wednesday, July 9, after US President Donald Trump threatened to impose 200% tariff on pharmaceutical imports into the US.

“They’re going to be tariffs at very high rate, like 200%,” Trump said during a Cabinet meeting.

However, the President said that the levies will not come into effect immediately.

"We’ll give them a certain period of time to get their act together,” referring to pharmaceutical companies. The US President added, “I’ll give people about a year, year and a half.”

However, these are not official orders and no definite timeline has been put in place either.

Back in April, after announcing the reciprocal tariffs across 60 countries, Trump had warned of Pharma tariffs to be at "never seen before levels."

In the three months since Trump's threats, the Nifty Pharma index has moved 3.5% higher. On a year-to-date basis, the index is down 5.5%.

Laurus Labs is the top gainer on the Nifty Pharma index so far this year with a 29% surge, while Natco Pharma is the biggest laggard with a 29% decline.

In case there is no pass through, companies with the highest exposure to the US generics market will likely take a one-time hit to their Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) in the range of 9% to 12%, according to Citi. You can on that here.

Indian Pharma stocks were sulking on Tuesday after brokerage firm Macquarie issued a double-downgrade on Aurobindo Pharma and a downgrade on Dr. Reddy's Laboratories and also revised the price targets sharply lower for five drugmakers.

The Nifty Pharma index ended 0.9% lower on Tuesday, led by Aurobindo and Dr. Reddy's.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsAurobindo PharmaGland PharmaLaurus LabsNatco PharmaNifty PharmaNifty pharma indexshare market todaySun Pharma Share Pricetrump tariffs