Sun Pharmaceutical Industries has been flagged as the most exposed Indian drug manufacturer to potential tariffs of up to 100% on certain medicines proposed by U.S. President Donald Trump, as highlighted by global brokerage Jefferies. The announcement regarding these tariffs is anticipated soon, stemming from a Section 232 investigation targeting companies without agreements with the White House. While Jefferies expects that generic drugs will remain exempt from these tariffs, the firm warns that imposing duties on off-patent drugs could lead to higher prices and potential shortages due to supply chain disruptions. Sun Pharma's innovative products, which account for 20% of its overall revenue, are primarily manufactured in South Korea and the European Union, with Jefferies estimating that tariffs on these products would be capped at 15%. Despite the tariff risks, Jefferies continues to value Sun Pharma at a premium compared to its large-cap Indian peers, maintaining a 'Buy' rating on the stock while cautioning about potential downside risks such as raw material price inflation and slow growth in the Indian pharmaceutical industry.