Trump tariff plan on generics threatens Indian pharma, markets steady
President Trump wants to put tariffs on generic drugs imported into the US which could hit Indian pharma companies hard: they supply 40% of America's generics, and that's most of their US business.
But so far, the stock market isn't freaking out: Dr. Reddy's and Zydus Lifesciences dipped a bit, but Sun Pharma actually went up.
Indian firms get 2 year window
There's a two-year window before these tariffs kick in, giving Indian companies time to rethink their strategies, like making more drugs in the US if needed.
Still, making medicines in India is way cheaper (30% to 50% less), so moving everything isn't simple.
Some firms already have US factories to soften the blow.
Plus, investors are waiting for details on which drugs might be exempt and whether companies can just pass costs along to buyers, so for now, it's mostly wait-and-see vibes.