Pharma companies likely to pass on costs in US as fresh levy looms

Brokerages also felt that the pharma companies will aim to pass on the tariff hike to payors

Indian pharmaceutical companies expect to largely pass on the impact of new US tariffs to customers, minimising pressure on margins.

 

But the markets remain spooked by US President Donald Trump’s warning that pharma tariffs shall be imposed at “levels you haven’t really seen before”. The Nifty Pharma index slipped more than 4 per cent on Friday.

 

Industry insiders are hopeful that India will push for zero import duties on pharmaceuticals in bilateral trade negotiations with the US. If successful, Indian drug exports to the US could be exempt from reciprocal tariffs.

 

The Indian Pharmaceutical Alliance has already requested that the