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Below the Quote on the Proposed US Tariffs on Generic Pharmaceutical Imports from Mr. Param Desai, Research analyst - PL Capital

“The announcement was largely unexpected, and there is still considerable ambiguity around how these tariffs will actually be implemented. Generic drugs entering the US will continue to attract a 0% tariff until August 1, 2028, after which tariffs are proposed to increase to 100% from August 2028 and 200% from August 2029. Several generic pharma companies already have manufacturing facilities in the US, which could partially mitigate the impact. However, a two-year window appears too short to relocate the entire generic pharmaceutical value chain to the US. Trump's term ends in January 2029, while the major tariff impact begins from August 2028, so the eventual implementation remains uncertain if there is a change in administration. We could see a knee-jerk negative reaction in pharma stocks today, particularly among large-cap generic players, until there is greater clarity on the policy.”

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