In a bold move that stirred global markets, U.S. President Donald Trump announced a 100 percent tariff on branded and patented medicines from firms that don’t set up production in the United States. The decision, slated to take effect this week, was reportedly put on hold, but industry alarm bells are already ringing.
Experts warn these tariffs could slow research and development while pushing up the cost of life-saving drugs. “Imposing new tariffs on medicines would undermine new U.S. investments because every dollar spent on a tariff is a dollar not available to build in America or discover cures,” said PhRMA, the U.S. pharmaceutical lobby group.
Even U.S. drugmaker Eli Lilly, exempt from the measure, voiced its opposition: “Tariffs ultimately increase the costs of medicines, which have historically been excluded from international tariffs because of their life-saving nature,” a spokesperson told Indystar.
Smaller manufacturers face the biggest risk. Many rely on plants in Mexico and Canada and lack the billions needed to build new facilities stateside. “It’s likely that the companies affected will be those making niche products,” noted Aaron Kesselheim, a Harvard Medical School professor. “That could be problematic for particular patients.”
Across the Pacific, Australia’s Health Minister Mark Butler cautioned that tariffs would raise import costs for American consumers and upset a beneficial trade balance. In Europe, the German VFA trade group warned a 100 percent levy would undermine Germany’s pharma hubs, disrupt supply chains and threaten patient care on both sides of the Atlantic.
As debate continues, the global pharma ecosystem watches nervously. Will stalled tariffs offer a reprieve, or is this the start of a new era of higher drug prices and fractured supply lines?
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U.S. drug tariffs raise fears of higher prices and supply disruptions
cgtn.com
