US President Donald Trump’s aggressive tariff stance has sent shockwaves through , with taking a hit. Trump, who is seeking a return to power, is considering imposing fresh tariffs on pharmaceuticals, automobiles, and semiconductors. While nothing is set in stone yet, if implemented, these tariffs could come into effect as early as April 2, putting significant pressure on India’s export-driven sectors.

Indian drug manufacturers, including Dr Reddy’s Laboratories, Lupin, Cipla, and Zydus, are particularly vulnerable. The US is a crucial market, accounting for nearly 38 per cent of India’s pharmaceutical exports. A tariff hike would dent their margins and make Indian generics less competitive. Currently, India imposes a , but Trump’s proposed move could see Indian drug exports facing a similar tariff for the first time. If a 10 per cent duty is imposed, it could potentially erode FY26 earnings estimates by

However, market expert . The US heavily depends on affordable Indian generics, and any drastic move could worsen the healthcare crisis for American consumers. A symbolic tariff in the range of 5-10 per cent is more likely, but even that could negatively impact pharma exporters. Sun Pharma and Torrent Pharma are expected to be relatively insulated due to their lower reliance on the US generics market.

Compared to pharmaceuticals, Indian automakers are in a better position. According to reports, , limiting the direct impact of tariffs. However, any protectionist measures by Trump could disrupt global supply chains, indirectly affecting Indian component suppliers and electric vehicle ambitions.

Indian markets reacted swiftly, with pharma stocks slipping  in early trade on February 19. Investors are on edge as they await further clarity on Trump’s trade policy. Meanwhile, government officials in New Delhi are closely monitoring the situation. With the possibility of Tesla’s entry into India and ongoing trade negotiations, the coming weeks will be crucial in determining how India navigates this brewing tariff storm.