Archive · 23 Jul 2026
US Tariff Hike on Generics to Raise Drug Prices: DRL CEO
The US government plans to increase tariffs on imported generic medicines.
This will lead to higher drug prices in the US.
Dr Reddy's Laboratories (DRL) CEO Erez Israeli says that moving manufacturing operations to the US is not practical due to cost differences.
DRL will watch how things evolve but will not do anything special because of the announcement.
They are open to partnerships or technology transfer if it benefits the business.
US plans to increase tariffs on imported generic medicines to 100% in 2028 and 200% thereafter.
DRL CEO Erez Israeli says moving manufacturing operations to the US is not practical.
DRL will have to increase drug prices in the US if tariffs are raised.
DRL is open to partnerships or technology transfer if it benefits the business.
DRL will watch how the situation evolves but will not take special actions due to the announcement.
- Who
- Dr Reddy's Laboratories Ltd CEO Erez Israeli
- What
- US tariff hike on generic medicines
- When
- August 2028
- Where
- United States
- Why
- To potentially increase domestic manufacturing and raise drug prices
US Tariff Increase
DRL's Response
Impact on Drug Prices
US Tariff Increase
The US government plans to increase tariffs on imported generic medicines, which will lead to higher drug prices in the US.
DRL's Response
Dr Reddy's Laboratories (DRL) acknowledges that they will have to increase prices in the US if the tariffs are raised.
Feasibility of Moving Operations
US Tariff Increase
The US government aims to encourage domestic manufacturing by increasing tariffs on imports.
DRL's Response
DRL CEO Erez Israeli states that moving manufacturing operations to the US is not practical due to cost differences.
- Company
- Dr Reddy's Laboratories Ltd
- CEO
- Erez Israeli
- Current Tariff Rate
- 0%
- Tariff Rate in 2028
- 100%
- Tariff Rate After 2028
- 200%
- Impact on Drug Prices
- Increase
- Feasibility of Moving Operations
- Not Practical