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Domestic Pharma Industry May Raise Drug Prices for US Market Amid Tariff Threat

Home / Domestic Pharma Industry May Raise Drug Prices for US Market Amid Tariff Threat
Indian Pharma May Raise Prices for US Market Amid Tariff Hike

With Indian generics making up a large portion of US drug imports, any price hikes would directly impact both exporters and American consumers.


πŸ“ˆ Tariff Threat and Its Impact on Indian Pharma

US President Donald Trump has stated that the US could impose hefty tariffs on pharmaceutical imports and copper, with duties on medicines potentially reaching 200%. While the situation is still unfolding, domestic pharma firms may have no choice but to pass on these costs to US consumers.

β€œIf it happens, then we will have to increase the prices accordingly, we don’t have a choice there as we operate on low margins,” a senior industry executive explained.

This move may result in higher drug prices in the US, while Indian exporters may face margin compression or loss of competitiveness in their most lucrative market.


πŸ’‘ Why the US Market Matters to Indian Pharma

According to ICRA Vice President & Sector Head Deepak Jotwani, the US accounts for 30–40% of revenue for most Indian pharmaceutical companies. This makes any policy change or tariff imposition from the US a serious concern for Indian exporters.

Indian pharmaceutical firms, especially those dealing in generic drugs, dominate the US market due to affordable pricing and quality manufacturing. But a 200% import tariff could threaten this competitive edge, forcing companies to either absorb higher costs or shift focus to new geographies.


πŸ”„ What This Means for Pharma Franchise Stakeholders

While large exporters may manage short-term shocks, small and medium enterprises (SMEs) could face severe operational stress. This also presents a wake-up call for pharma franchise businesses in India to:


🌍 The Need to Explore New Markets

With US policies growing uncertain, many industry experts believe this is the right time for Indian pharma companies to explore EU, Southeast Asia, and African markets for exports. This is especially relevant for franchise-based businesses and distributors who want to secure future revenues through market diversification.

Those tied up with a monopoly medicine company in India will benefit more, thanks to exclusive marketing rights and less market saturation.


πŸ† Partner with the Best Pharma Franchise Company in India

If you’re planning to enter or expand in the pharma sector, this is a critical moment to act. By associating with the best pharma franchise company in India, you get access to:

  • WHO-GMP certified manufacturing

  • 2000+ high-demand pharma products

  • Monopoly PCD franchise rights

  • Timely supply and competitive pricing

  • Strategic support to withstand market volatility


πŸ“ž Get Started Today

With global markets shifting, it’s essential to secure your pharmaceutical business with the right partner. Whether you’re a distributor, wholesaler, or new entrepreneur, the pharma franchise model gives you the flexibility, profitability, and protection you need.

πŸ“² Call Us: +91-9216325808
πŸ“§ Email Us: bdm@dmpharmaglobal.com

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