Pharma Stocks Aurobindo Pharma, Lupin Rally Over 4% As Trump Might Backtrack On 100% Tariffs

The pharma stocks are experiencing surge share prices in trade on October 9, 2025 after the White House reportedly mulls over the possibility of not imposing tariffs on generic medicines.

This comes as big relief for Indian pharmaceuticals firms as they pander to the massive-scale of generic prescriptions in the United States, accounting for 40 per cent of generic exports from the south Asian nation.

India supplies 47% of all generic prescriptions filled in US pharmacies, as per the IQVIA, a global medical data analytics company. 

According  to The Wall Street Journal, the move has not been finalized yet and is subject to change in the coming weeks.

The members of the US President Donald Trump’s Domestic Policy Council argued that “applying tariffs to generic medications would result in price increases and even drug shortages for consumers.”

They added that tariffs wouldn’t work for generics because production costs in countries like India are so low that even very high tariffs might not make US manufacturing profitable.

The top gainers today under Nifty Pharma Index were Aurobindo Pharma trading at Rs 1,107 per share, higher by 3.38 %, Lupin's share price was trading 2.59% higher at Rs 1,955 per share, Laurus Labs was trading 2.15% higher at Rs 872 apiece.

Other pharma stock trading in green included Piramal Pharma Limited, and Sun Pharma.

Also Read: TCS Q2 Results 2025: IT Major To Declare Q2 Earnings Today- Key Details

Trump’s 100% tariff Imposition On Pharmaceuticals

US  President Donald Trump had announced that 100% tariffs would be in place on patented drugs from October 1, 2025, except for companies building pharmaceutical plants in the US.

Taking to Truth Social, he said, “Starting October 1st, 2025, we will be imposing a 100 per cent Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America. 'IS BUILDING' will be defined as 'breaking ground' and/or 'under construction.”

Currently, India’s pharma exports has been witnessing a rising growth curve. In FY25, the yearly exports hit a record $30 billion, driven by a 31% surge in March year-on-year (YoY). August 2025 alone rose from $2.35 billion in August 2024 to $2.51 billion.