Shares of Indian pharmaceutical giant Wockhardt soared more than 9 percent on September 29, 2025, after a White House clarification brought relief to global drugmakers: US President Donald Trump’s latest round of tariffs on branded pharmaceutical products will not apply to countries with which the United States has negotiated trade agreements. The announcement—coming just days before the new duties were set to take effect on October 1—has significant implications for the pharmaceutical industry in Europe, Japan, and beyond, as well as for multinational players like Wockhardt that maintain manufacturing hubs across the continent.
According to Bloomberg News and RTÉ, the Trump administration’s plan to impose 100 percent duties on certain pharmaceutical imports was met with consternation and confusion among international partners. However, a White House official clarified on September 26 that these tariffs would not override existing trade deals, specifically naming the European Union and Japan as beneficiaries of exemptions. The official explained that, as per the framework of prior agreements, duties on pharmaceutical imports from these regions would remain capped at 15 percent—a crucial detail for exporters and investors alike.
For Wockhardt, a company with manufacturing plants in France, North Wales, and Ireland, and a presence in the US, UK, Switzerland, Mexico, and Russia, the news couldn’t have come at a better time. The company’s shares rallied to their highest point in nearly four months, as investors bet that Wockhardt’s European operations would shield it from the brunt of the new US tariffs. Wockhardt’s Chairman, Habil Khorakiwala, told CNBC-TV18, “Our new molecules, like Zaynich, which we would be going to rest as our first drug, the product is entirely manufactured in Europe, and therefore it will not be covered by Indian tariffs, and it would be covered by the European tariffs.” He added, “There are approaches available whereby one can reduce the impact of tariffs significantly.”
The EU’s position was also made clear by Olof Gill, the European Commission’s deputy spokesperson. Speaking to RTÉ, Gill described the 15 percent tariff ceiling as “an insurance policy that no higher tariffs will emerge for European economic operators.” He emphasized, “This clear all-inclusive 15% tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators. The EU is the only trade partner to achieve this outcome with the US.” The cap, spelled out in black and white in the July 2025 trade agreement between the US and EU, provides a degree of certainty for European exporters navigating an otherwise volatile transatlantic trade landscape.
European Commissioner for Trade Maroš Šefčovič met with his US counterpart, Jamieson Greer, on September 25 to discuss the implications of the new tariffs and to reaffirm the commitments laid out in the joint statement issued on August 21, 2025. According to Ireland’s Tánaiste Simon Harris, the EU-US Joint Statement “made absolutely clear that any new tariffs announced by the US on pharmaceuticals under its Section 232 investigation would be capped at 15% for pharma products being exported by the EU. This remains the case and underlines again the value of the agreement reached last month.”
For Ireland, which accounted for €33 billion of the EU’s €120 billion in pharmaceutical exports to the US last year, the 15 percent cap is not just a technicality—it’s a vital safeguard for a cornerstone of the national economy. Enterprise Ireland, the country’s export promotion agency, expressed confidence that the ceiling would hold. Jonathan McMillan, the agency’s Head of the Trade and Tariff Response Team, told RTÉ, “The terms of the deal were reiterated again on 21 August, and we are absolutely confident that that ceiling still applies. It’s 15% for pharmaceutical and other product areas.” He also noted ongoing negotiations for further carve-outs and exemptions, saying, “We’re still lobbying, and we’re still working with our partners to try to negotiate with the US on those.”
Wockhardt’s business model, with nearly 78 percent of its global revenue coming from international operations, is uniquely positioned to benefit from the exemptions. The company’s acquisition of the French firm Negma and its investment in European manufacturing capacity for both formulations and active pharmaceutical ingredients (APIs) have proven prescient moves. Its manufacturing and injectable facility in North Wales, UK, and its plant in Ireland further insulate the company from trade shocks. Wockhardt is now among the top three Indian generic companies in the UK and the sixth largest generic supplier in Ireland’s retail and hospital channels—a testament to its international reach.
One of the most closely watched developments in Wockhardt’s portfolio is its investigational drug Zaynich, which has achieved over 97 percent efficacy in clinical studies for serious infections, including a complex case of meningitis treated under compassionate use. The company confirmed that Zaynich is manufactured in Europe and therefore falls under the EU-US trade agreement’s tariff protections. Chairman Khorakiwala announced that the application for a US Food and Drug Administration (USFDA) filing for Zaynich is expected within the week—a milestone that could open new markets for the drug, free from the threat of punitive US tariffs.
The July 2025 EU-US trade agreement didn’t just address pharmaceuticals. Earlier in September, the US cut tariffs on auto imports from the EU to 15 percent, down from 27.5 percent, as part of the deal. The European Commission is also working to secure carve-outs for other sectors, including beverages. The EU’s proactive engagement with Washington, as described by Olof Gill, is ongoing: “The EU and US continue engaging towards implementing the joint statement commitments, while exploring further areas for tariff exemptions as well as wider cooperation.”
Despite the relative certainty provided by the tariff cap, the situation remains complex for exporters. As McMillan explained, “If you’re selling products, exporting products into the US market, you have to go through customs clearance, you have to pay a tariff, and that’s a complicated thing.” Enterprise Ireland has dedicated resources to help companies navigate these challenges, but the agency acknowledges that the landscape is still shifting. “It remains a very complex situation,” McMillan admitted, “but we are absolutely confident that that ceiling still applies.”
For now, the pharmaceutical industry—and especially firms with a robust European footprint like Wockhardt—can breathe a sigh of relief. The 15 percent tariff ceiling, hard-won through months of negotiation, stands as a bulwark against sudden shocks in a sector that is both economically vital and politically sensitive. As the US, EU, and other trade partners continue to hammer out the fine print, the world will be watching to see whether this fragile equilibrium can hold in the months ahead.
