Pharma stocks crash after US President plans to impose tariffs on pharmaceuticals
On March 25, the shares of many pharmaceutical companies came under selling pressure, despite a generally strong market, following remarks by US President Donald Trump. He announced plans to impose tariffs on automobiles, aluminum, and pharmaceuticals in the near future. Trump stated, “We’ve been ripped off by every country,” during a press interaction on March […] The post Pharma stocks crash after US President plans to impose tariffs on pharmaceuticals appeared first on Trade Brains.
On March 25, the shares of many pharmaceutical companies came under selling pressure, despite a generally strong market, following remarks by US President Donald Trump. He announced plans to impose tariffs on automobiles, aluminum, and pharmaceuticals in the near future. Trump stated, “We’ve been ripped off by every country,” during a press interaction on March 24.
This news caused the Nifty Pharma index to drop by 1.34 percent, ending its six-day winning streak. During Tuesday’s trading session, the index fell by over 1.5 percent, hitting an intraday low of 21,427.8, compared to the previous close of 21,771.15.
Trump further emphasized that the US would introduce reciprocal tariffs on April 2, declaring it a “Liberation Day” for the US economy. However, he clarified that these tariffs would not apply uniformly to all countries, with potential exemptions for some, though he did not provide further details.
He argued that the new tariffs on automobiles, aluminum, and pharmaceuticals could generate “astronomical” revenue, which could help maintain low tax rates. This comes amid growing concerns about rising inflation in the US due to increased tariffs.
Earlier in February, Trump had proposed a 25 percent tariff on auto, semiconductor, and pharmaceutical imports but had delayed the implementation of these tariffs while imposing stringent duties on metal imports.
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Here are a few pharmaceutical stocks that experienced significant sell-off pressure after Trump’s comments on the potential tariffs:
Dr Reddys Laboratories Limited: With a market cap of Rs. 98,340 crores, the stock moved down by around 3.4 percent to hit an intraday low at Rs. 1,168.5 on BSE, during Tuesday’s trading session.
- Aurobindo Pharma Limited: The shares of an integrated global pharmaceutical company fell by 3.1 percent to Rs. 1,172 on Tuesday, with a market cap of Rs. 69,463.8 crores.
- IPCA Laboratories Limited: During Tuesday’s trading session, the share price of an innovation-led transnational pharmaceutical company moved down by 4 percent to Rs. 1,397.05 on BSE, with a market cap of Rs. 35,604.6 crores.
- Lupin Limited: With a market cap of Rs. 94,855.5 crores, the stock slumped by about 3.2 percent to hit an intraday low at Rs. 2,054 on Tuesday, as against its previous closing price of Rs. 1,410.5.
- Granules India Limited: The stock reached an intraday low at Rs. 500.15 on BSE, down by nearly 2.2 percent on Tuesday, compared to its previous closing price of Rs. 511.35, with a market cap of Rs. 12,276.2 crores.
Written by Shivani Singh
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The post Pharma stocks crash after US President plans to impose tariffs on pharmaceuticals appeared first on Trade Brains.
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