Tariff Turbulence: The Looming Impact on U.S. Pharmaceutical Prices

A proposed 25% U.S. tariff on pharmaceutical imports could increase domestic drug prices by 12.9%, as per an Ernst & Young analysis. The U.S. pharmaceutical lobby warns such tariffs may damage domestic manufacturing efforts. The Trump administration's probes are examining national security concerns linked to foreign drug reliance.

A report by Ernst & Young, commissioned by the major U.S. pharmaceutical trade group, reveals the potential skyrocketing impact of a proposed 25% tariff on pharmaceutical imports. The change could boost U.S. drug costs by $51 billion annually if the tariff translates to consumer prices.

The United States, importing $203 billion in pharmaceutical products in 2023, relies heavily on European suppliers. The Pharmaceutical Research and Manufacturers of America (PhRMA), representing significant industry players, argues tariffs could hamper domestic drug production, a key focus for President Trump's administration.

The Trump administration's recent investigations into pharmaceutical imports aim to assess the national security risks of foreign dependency. Drugmakers are seizing this opportunity to argue that hefty tariffs would obstruct their ability to ramp up U.S. manufacturing efficiently.

(With inputs from agencies.)