The US pharma industry is likely to be turned upside down as President Donald Trump, on September 25, said a 100-percent tariff on patented and branded foreign medicines will be enacted from Oct 1 unless firms already have started constructing U.S. manufacturing plants. The policy will impact key antibiotics, most notably Amoxicillin Trihydrate, with wide reliance on international supply chains. The U.S. imported almost USD 252 billion worth of drugs in the past year, and tariffs would raise cost, tightening distributors' wallets and potentially causing treatment costs to rise for patients. Although major pharmaceutical companies have committed about USD 300 million of investments in domestic factories, it takes time to build such facilities, and most of these companies may still need to endure tariffs in the meantime. Supply of Amoxicillin Trihydrate will likely constrict as inventories are siphoned off, and logistical issues added to the volatility within the market. October 1 is a date significant to the industry, and Amoxicillin Trihydrate will be one of the most affected drugs, symbolizing underlying tensions between health care affordability and trade protectionism within the U.S.
