Dr. Reddy’s Laboratories Ltd. (NYSE:RDY) stock fell Wednesday after the generic drugmaker reported first-quarter fiscal 2027 earnings and revenue that missed Wall Street estimates. Investors also weighed U.S. President Donald Trump’s plan to impose steep tariffs on imported generic drugs over the next several years.
Trump Details Phased Generic Drug Tariff Plan
Trump said generic drugs imported into the U.S. would remain exempt from tariffs until August 2028 before facing sharply higher duties.
In a social media post, Trump wrote, “Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of 0% for a two year period of time, after which the TARIFF will be raised to 100% for a one year period of time, and 200% thereafter.”
Trump said the policy aims to push pharmaceutical companies to move generic drug manufacturing to the United States. Companies that do not build production facilities within the designated timeframe would face the higher tariffs.
