Sun Pharma Declines 2% Amid Fresh US Tariff Concerns

Sun Pharmaceutical Industries Shares Decline Amid US Tariff Concerns

Shares of Sun Pharmaceutical Industries declined 2.10% to Rs 1,659, amidst concerns over the latest US tariff announcement. The United States issued a Presidential Proclamation titled "Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients into the United States," invoking Section 232 of the Trade Expansion Act of 1962 to impose tariffs on imported patented drugs and active pharmaceutical ingredients (APIs).

The order marks a shift toward treating pharma supply chains as a national security priority. Pharma stocks have been under sustained selling pressure since the announcement. In the previous session on April 2, shares across the sector fell by as much as 4%, with major names like Biocon, Divi's Laboratories, and Sun Pharma among the key laggards.

US President Donald Trump has signalled the possibility of steep tariffs on pharmaceutical imports, ranging between 100% and 200%, as part of efforts to bring manufacturing back to the US and lower drug prices. However, several global drugmakers, including Pfizer Inc. and Eli Lilly and Company, have reached agreements with the White House that grant them a three-year exemption from these proposed levies.

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The Global Trade Research Initiative (GTRI) said the proposed US tariffs are unlikely to significantly impact India in the near term, given its strong position in supplying low-cost generic medicines to the American market. Generic drugs account for over 90% of prescriptions in the US and are currently exempt from the tariffs, likely for about a year to prevent supply disruptions and price spikes.

India exported pharmaceutical products worth $9.7 billion to the US in 2025, making up around 38% of its total global pharma exports of $25.8 billion. However, GTRI founder Ajay Srivastava cautioned that Indian companies involved in branded or specialty drugs, as well as those supplying inputs for patented medicines, could face pressure from the new tariff regime.

Srivastava added that the steep tariffs, potentially up to 100%, would primarily affect countries such as Ireland, Germany, Switzerland, Belgium, Denmark, United Kingdom, and Japan, which are key exporters of high-value patented drugs and biologics to the US. He further noted that the order does not provide exemptions even to countries with existing trade arrangements with the US, including the European Union and Japan.

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