US Salicylic acid prices shot up in September, extending August's increase, due to seasonal demand and a fresh trade policy. Salicylic acid, which is applied in the pharmaceutical and skin-care markets, is typically more in demand later in 2025 when cold weather boosts use. But the key driver is President Trump's Sept. 25 declaration: a 100% tariff on patented medicines imported from overseas if drug manufacturers don't open US plants by Oct. 1. That deadline triggered hoarding, further boosting prices. The US, which imports $252 billion worth of drugs every year, mostly from Asia, is vulnerable to shortages and price shocks. Analysts forecast sudden price hikes in Q4 2025 that will hit wholesalers and supply chains. The lower-level distributors will experience lower margins and stock imbalances. As some businesses shift to domestic manufacturing to evade tariffs, this process will be a slow one, and the market will be subject to near-term volatility. The policy is intended to restructure pharmaceutical supply chains but can potentially jeopardize pending price inflation and supply shortages, particularly for critical intermediates such as Salicylic acid. Industry stakeholders are currently re-strategizing to conform to this unprecedented shift.
