Sun Pharma, Aurobindo Pharma, other stocks in focus as Trump exempts India from 100% tariffs on some speciality drugs

Shares of Sun Pharma, Aurobindo Pharma and other companies will remain in focus on Tuesday after US President Donald Trump-led administration included India on the list of 20 countries on whom it will not impose 100% tariff on some certain patented pharmaceutical imports and associated ingredients.

The US commerce department published the list, noting that it will not charge any ad valorem tariff on certain specialty drugs and associated ingredients used for treatment of rare medical conditions imported from these 20 countries, with India being one of them.

Eligible products for the 0% tariff rate include drugs designated for rare diseases, infertility treatments, cell therapies, gene therapies, antibody-drug conjugates and animal pharmaceuticals. Generic pharma products and associated ingredients are not subject to Section 232 pharmaceutical tariffs, according to the US government notice.


Also Read | US exempts India and 19 nations from 100% tariff on certain speciality drugs

Other countries who are going to be covered by the zero-tariff provision are Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, Britain and Vietnam.

The notice said the qualifying pharmaceutical products from these countries could receive the 0% tariff because they have a current or forthcoming trade and security framework agreement with the United States. It is important to note that generic pharmaceutical products and their associated ingredients are not subject to the Section 232 pharmaceutical tariffs.

Trump's tariff tantrums

This comes after Trump in April issued a proclamation to impose tariffs on imports of patented pharmaceuticals, biologics and associated ingredients into the US as part of efforts to encourage domestic production. Later in July, he spooked investors by threatening to impose 200% tariff on imported generic medicines.

The US imported $213 billion worth of pharmaceutical products in 2025, as per a GTRI report. India has the most at stake among generic drug exporters. It exported $25.8 billion of pharmaceuticals worldwide in 2025, out of which $9.7 billion, or nearly 38%, went to the US, making America India's largest pharmaceutical export market. Indian companies supply 47% of all generic prescriptions dispensed in the US, making India the country's largest source of affordable generic medicines.

The pharma stocks have seen sharp upswings and downswings amid Trump’s constant tariff flipflops. Overall, the Nifty Pharma index has gained around 18% in 2026 so far, outperforming Nifty 50, which has fallen around 13% at the same time.

Also Read | Indian pharma firms may yet survive Trump's 200% tariff bombshell

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.