India Pharmaceuticals: US tariffs: Better pricing and lower competition can offer offset

研报英文原文证据摘录

India Pharmaceuticals: US tariffs: Better pricing and lower competition can offer offset

22 July 2026

Equities

Pharmaceuticals India Pharmaceuticals

US tariffs: Better pricing and lower competition can

offer offset India

◆ US President announced that zero tariffs on generic drugs will Damayanti Kerai*

continue for two years from 1 August; steep tariffs will follow Analyst, India Healthcare HSBC Securities and Capital Markets (India) Private Limited

thereafter damayantikerai@hsbc.co.in

+91 88 7933 5196

◆ Most leading Indian pharma companies already have plants Bhavya Gandhi*

Associate, Equity Research

in the US, providing a hedge against potential high tariffs HSBC Securities and Capital Markets (India) Private Limited

bhavya.gandhi@hsbc.co.in

+91 22 40891593

◆ If tariffs are imposed, we think higher prices and lower

competition can help to absorb the tariff impact * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

What’s the update? On 21 July 2026, US President Trump announced that generic

drugs imported into the US will continue to face zero tariffs for two years from August 1.

Thereafter, a 100% tariff will be imposed for a year, followed by a 200% tariff. This is an

effort by the US administration to bring generic manufacturing back to the US

(reshoring). The US policy on patented and branded drugs remains unchanged, with

innovator companies having signed deals to lower price of patented drugs in the US.

Our thoughts on the update: Generic drug supplies from India to the US play a key

role in helping the US healthcare system to lower costs. In the US pharma market,

generic drugs account for c90% of prescription volumes and Indian companies supply

c60% of the total generics volume.