Alarm bells ring for the surging pharma shares?
After the announcement of reciprocal tariff, while other stocks across the world including the IT sector saw a huge fall, on the other hand, pharma shares saw a surge. But now this happiness is not going to last for long. Such a surge was seen because the trump administration had kept pharma out of the tariff till now. But after the surge in the pharma sector shares, the question is now being raised whether the trump administration is considering imposing tariff on it?
President donald trump himself has given this indication. President trump, while answering to reporters in air Force One, said that pharma will start soon and I think you would not have thought that this would happen.
After this indication by him, the pharma stock crashed at around 11:15 am. The Nifty Pharma index has suffered the most. Its index fell by about four and a half percent, while the shares of Aurobindo Pharma, Lupin and IPCA Labs slipped by about six percent.
trump said that we are looking at pharma as a separate category and will announce it in the future. Earlier, Caroline Levitt, who has been serving as white house Secretary in the trump administration since january 20, 2025, also indicated that bringing back pharmaceuticals is being considered. He further said that we are outsourcing our important supply chain from outside. Would we like our life-saving medicines to be made in china or America? This is a common sense policy.
It is worth noting that donald trump announced tariffs on America's trading partner countries on april 2, calling it Liberation Day. He has announced a discounted 26 percent tariff on India. india currently imposes about 52 percent tariff on America. Trump's move is being criticized all over the world. In response to this, many countries including Canada, china have announced to impose retaliatory duty on America. On the other hand, experts are predicting dire consequences. They believe that not only will a trade war break out in the coming days, but there is also the threat of recession.
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