Pharma, Building Materials, Furniture & Others in Focus as Trump Imposes 25–100% Tariffs

The US President Donald Trump has announced sweeping, industry-specific tariffs mere hours ago, targeting branded pharmaceuticals, building materials, heavy trucks, kitchen cabinets, upholstered furniture, and more. The move is aimed at pressuring foreign manufacturers to set up production in the US, protect domestic industries, and secure national security. These tariffs range from 25 percent to 100 percent and are set to take effect from October 1, 2025. Indian exporters and listed companies across sectors are bracing for direct consequences, with sector-wise impacts expected to reshape trade flows and financial performance.

Pharmaceuticals

Trump’s most significant new measure is a 100 percent tariff on imported branded or patented pharmaceutical products, unless the manufacturer is actively building a US-based plant. Generic drugs are exempt. India exports roughly $20 billion worth of drugs annually to the US, with generics comprising nearly 40 percent of US Generics. While generic-focused players like Dr Reddy’s, Cipla, Glenmark Pharma, and others could escape disruption, however, branded exporters and those that sell some of the patented formulations, like those sold by Sun Pharma, Biocon, Lupin, Aurobindo, Zydus, and other players, can face a steep cost hike, risking volume declines and loss of market share. 

Building Materials and Furniture

Among building materials, kitchen cabinets and bathroom vanities will attract a 50 percent tariff, while upholstered furniture faces a 30 percent levy. This particularly threatens Indian furniture exporters, who already suffered under the earlier 25 percent duties. Rising prices may push American builders toward other supply chains, particularly Bangladesh and Vietnam, hitting Indian clusters.

Heavy Trucks and Auto Components

Heavy-duty trucks are subject to a new 25 percent tariff, raising costs for Indian exporters supplying truck parts and finished vehicles to the US. This can affect component manufacturers as well. While some of them are not the largest segment for Indian exports, these higher duties could erode competitiveness and profits.

Equity Market Reaction and Sectoral Trends

Indian equity benchmarks showed caution after the news, with pharma stocks sharply in focus. Analysts highlight that US supply chain disruptions and inflationary pressures could persist, and several Indian exporters may need to reassess their investments and expansion plans if tariffs continue. The near-term risks to earnings and valuations for some stocks remain under pressure, especially where the companies have the US as their primary export market.

Conclusion

Trump’s latest tariffs create immediate headwinds for Indian listed exporters in pharma, building materials, trucks, furniture, textiles, and more. Companies highly dependent on the US market need to act fast by reassessing US expansion, negotiating local production, or switching export focus to other regions. The ripple effect is set to change sectoral earnings trajectories, supply chains, and competitiveness in global trade, especially as industry players and policymakers mobilize responses to the evolving tariff landscape.