Explained: What Donald Trump's up to 200% pharma tariffs mean for Indian investors

Donald Trump announced a phased tariff structure on pharmaceutical imports, starting with no tariffs for two years, then 100 percent, and eventually up to 200 percent, aimed at pushing companies to set up US manufacturing plants. Indian pharma stocks including Sun Pharma, Cipla, Dr Reddy's, Lupin, Zydus, and Alkem fell over 2 percent in a knee-jerk reaction. Experts, however, expect minimal long-term impact since around 90 percent of US generic prescriptions are imported globally, India's manufacturing cost advantage remains 40-60 percent lower than the US, and Trump's term ends January 2029 while the major tariff impact begins August 2028.