Indian pharma: navigating potential US tariff storms

Even as the spectre of tariffs looms over the pharmaceutical trade between India and the USA, presenting a complex scenario with potential repercussions for both regions, its implementation would necessitate a rapid recalibration of supply chains and pricing strategies, reports The Pharma Letter’s India correspondent.

In a scenario where tariffs are imposed, American customers, primarily distributors and pharmacy chains, could seek to mitigate the immediate impact by requesting Indian drug suppliers to temporarily absorb the newly imposed import duties, state market experts. This strategy would aim to maintain existing price points and avoid immediate disruptions to patient access.

However, this absorption would directly impact the profit margins of Indian drugmakers, particularly those heavily reliant on exports to the region, the experts add.