Economic Implications
A proposed 25% tariff on pharmaceutical imports could raise drug costs by nearly $51 billion annually, potentially increasing prices by up to 12.9% if fully passed on to consumers, according to a report by Ernst & Young.
The tariffs could also raise domestic production costs by 4.1% for U.S. manufacturers using imported ingredients, risking the global competitiveness of U.S.-made drugs and affecting export-related jobs.
Industry and Health Impact
The pharmaceutical industry fears that such tariffs would disrupt supply chains, exacerbate drug shortages, and force companies to decide between absorbing costs or passing them onto patients.
Generic drug manufacturers, which rely heavily on ingredients from countries like and , could be disproportionately affected, potentially leading to market exits and worsening drug shortages.