18 hours Ago
Trump Reciprocal Tariffs: Shares of Indian pharmaceutical firms with considerable stakes in the US market, including Gland Pharma Ltd, Aurobindo Pharma Ltd, Dr. Reddy's Laboratories Ltd, and Sun Pharma Ltd, experienced an increase of 3%-13% during Thursday's trading session after US President Donald Trump refrained from making specific reciprocal tariff declarations pertaining to the pharmaceutical industry. Trump unveiled reciprocal tariffs affecting over 60 nations, including India, the European Union, China, and Vietnam, among others.
According to a fact sheet issued by the White House, drugs and various other products, including those already affected by other tariffs, are excluded from the new levies. However, it's important to highlight that specific tariff announcements by sector were not included in the White House's agenda for the announcements made on April 2. The President has indicated in the past that tariffs on pharmaceuticals, semiconductors, and other industries would be revealed at a later date, although he did already apply a 25% tariff on imports of automobiles and additional auto parts into the US.
Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities explained that pharmaceuticals sector gets excluded from individual reciprocal duties but that may become part subject to future duties. This lines brings in some sentimental relief to the sector and today we may see a reasonable amount of positivity in the sector performance. As of now, India charges an approximately 10% tariff on Pharma imports from the US, while the US does not impose any tariff on imports of Indian pharmaceutical items.
“Pharma stocks like Gland Pharma, Aurobindo Pharma., Dr. Reddy's Lab, Sun Pharma are in focus today as these companies with significant exposure to the US,” added Tapse.
(more to come).
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