Trump’s Pharma Push Rattles Indian Markets | Tariff Threat & Stock Reaction Explained

Indian pharma stocks took a sharp hit after U.S. President Donald Trump signed a new executive order aimed at reviving domestic drug manufacturing. Benchmark indices, which opened slightly in the green, turned negative as pharma giants like Sun Pharma, Cipla, Lupin, and Aurobindo Pharma tumbled in early trade. Trump’s order seeks to fast-track pharmaceutical plant approvals and simplify environmental clearances in the U.S.—a move seen as the beginning of a larger “Made in America” push for the drug industry. The White House emphasised this as a critical supply chain reform, and Trump hinted at upcoming announcements on reducing drug costs and potentially imposing tariffs on pharma imports. The implications for India are serious. The U.S. accounts for nearly 30% of Indian pharma exports, amounting to $9 billion in FY25. Any tariffs or restrictions could severely dent margins and export volumes of Indian pharmaceutical players. This report breaks down Trump’s policy, key market movements, and what lies ahead for India’s pharma sector.