The weakness follows media reports that the administration of Donald Trump may impose tariffs of up to 100% on pharmaceutical imports for companies that do not enter into drug pricing agreements with the US government.

These agreements require drugmakers to lower prices in the US, often aligning them with global benchmarks, and in some cases commit to increasing manufacturing within the US. Companies that comply may receive temporary relief from tariffs, while those that do not could face steep import duties.

The proposed move is linked to an ongoing investigation under Section 232 of the Trade Expansion Act. While some global drugmakers have secured temporary relief through such agreements, others remain exposed to tariff risks.

For Indian pharma companies, which derive a significant share of revenue from the US market, the development raises concerns over pricing pressure, margin compression, and potential disruption to export dynamics.