Investing.com-- Shares of Indian drugmaking firms, especially those with exposure to the U.S., retreated on Tuesday after President Donald Trump said he will announce tariffs on pharmaceutical imports in the next two weeks.

Sun Pharmaceutical Industries Ltd. (NSE: SUN ),Dr Reddy’s Laboratories Ltd (NSE: REDY ), Lupin Ltd (NSE: LUPN ), Cipla Ltd. (NSE: CIPL ), and Aurobindo Pharma Ltd. (NSE: ARBN ) fell between 1% and 2.7%, while the Nifty Pharma Index fell nearly 2%. The broader Nifty 50 benchmark lost 0.4%.

The five companies are major contract pharmaceutical manufacturers, and export large amounts of locally produced prescription drugs and vaccines to the United States.

Speaking at the White House, Trump warned that he will unveil tariffs on pharma imports in the next two weeks, with the move coming after his administration initiated a Section 232 investigation in April exploring the impact of pharma imports on national security. Such an investigation usually precedes trade tariffs.

Trump also signed an executive order aimed at building more drugmaking facilities in the U.S., a move that could present decreased long-term demand for Indian exporters.

Indian drugmakers have been grappling with a difficult year, as the value of their exports was also pressured by a drop in the dollar and a rally in the Indian rupee.

The Nifty Pharma index is trading down 8.2% so far in 2025.