March 2025 saw a notable decline in Amoxicillin trihydrate prices in the US, which continued the lower trend observed during the previous month.  High inventory levels and low demand from downstream formulation sectors were cited by market participants as the reasons for the ongoing price decline.

The oversupply condition persisted as distributors kept above-normal stockpiles built up earlier in the quarter amid uncertain procurement cycles. With no near-term recovery in demand for Amoxicillin trihydrate, vendors used competitive price strategies to facilitate inventory movement.

Furthermore, increased competition among local producers put additional downward pressure on Amoxicillin trihydrate prices. Market purchasers also exercised caution, anticipating greater falls in the immediate term, putting additional pressure on transactional values.

The large decline in Amoxicillin trihydrate costs in the United States in March can be ascribed to changing international trade tensions, particularly with China and India, which are key APIs (Active pharmaceutical Ingredients) exporters.  These countries provide the majority of the world's active pharmaceutical components, such as Amoxicillin trihydrate, therefore changes in trade policy or tariff regimes have a direct impact on the US pharmaceutical market.

U.S. President Donald Trump introduced new 25% tariffs to Mexican and Canadian goods together with new Chinese product charges on March 4 which escalated trade conflicts while worrying pharmaceutical supply chains. The trade developments led US buyers to adopt a cautious attitude and reduce their purchasing activities to protect against potential future policy changes as well as price changes thus causing short-term demand to drop.

The announcement of prospective US tariffs on Indian pharmaceutical exports, which are scheduled to go into effect in early April, exacerbated the situation. With more than 30% of Indian pharmaceutical exports going to the United States, the sector faced impending pressure that may raise production and export costs, particularly for companies already operating on razor-thin margins. Anticipating these taxes, Indian exporters most likely pushed supplies to the US ahead of the deadline, resulting in a brief boom of supply in the American market in March. The ensuing surplus, combined with careful downstream demand, pushed Amoxicillin trihydrate prices down significantly.

In addition, the prospect of additional "reciprocal tariffs" and non-tariff barriers against Indian and other international exporters heightened market uncertainty. Buyers and distributors in the United States opted to wait and see, restricting new purchases and relying on current stockpiles to minimize transaction volumes and keep Amoxicillin trihydrate costs low. The combined effect of anticipatory stockpiling, policy uncertainty, and changing demand behavior, at the center, acted to lower Amoxicillin trihydrate prices in the month.

According to the ChemAnalyst report, Amoxicillin trihydrate prices in the United States are expected to rise in the coming months, as March's surplus ends and trade-related cost pressures begin to emerge. As new US taxes on Indian medication imports go into force in April, export shipments may fall, reducing supplies. As distributors deplete existing stockpiles and resume normal purchasing with increased uncertainty, demand will rise, pushing Amoxicillin trihydrate prices upward.