Avoid! This is the most common stance made on the shares of pharmaceutical companies by the stock market experts at the hindsight of the global trade uncertainties which loom large at India. From brokerage firm Lemonn Markets to Investment Advisory, Mantri Finmart, all wealth management services providers have advised only one thing which is to avoid any fresh investment in this sector for the time being. Pharma stocks feel cold US President Donald Trump had announced fresh plans to impose 25% tariffs on pharmaceutical, auto and semiconductor imports from April 25, 2025. This sent shivers down the spine of the investors leading to panic selling of stocks from the relevant sector. In last two days, shares of most pharma stocks have closed in red: On the first immediate session after Trump’s 25% tariff announcement on February 19, the Nifty Pharma index had opened with a gap down of 2%. Even on Thursday, the 20 constituent index closed in the negative zone. Lemonn Markets: Pharma sector vulnerable to Trump’s tariff war According to the brokerage firm, Lemonn Markets, research analyst, Satish Chandra Aluri, pharma is one of those sectors which are vulnerable to Trump’s tariff threat. He has said that sectors with the US and international export exposure might face headwinds in coming times. Chandra has advised investors to stay away from taking exposure in such segments. Pharma amongst those most affected by the US tariffs: Mantri Finmart While, Investment Advisory, Mantri Finmart, founder and CEO, Arun Mantri, said that pharma is one of those sectors which would be most affected by the US’s reciprocal tariffs. Tariff increase of 25% on US imports of pharmaceuticals from India is going to hit the latter’s domestic industry very hard. Share of pharmaceuticals industry in India’s total exports: According to the government data, the share of pharma and drug exports in total exports made from India to the world stood at 3.5% in FY24. India exported pharmaceuticals worth $27.85 billion in the concerned financial year out of total exports of $778.21 billion. The country ranks third in the world when it comes to production. She is known as the ‘Pharmacy of the world’. The industry employed more than nine lakh people in FY23. Which country is India’s top export partner? In FY24, the US was India’s top export partner. America has continuously been one of the top export destinations in last two decades or so. Share of US in India’s total exports: Out of total goods and services exported from India, 11% of it went to America in the previous fiscal year