The Trump tariffs that were imposed on several countries earlier this month have now become official, affecting trade in several industries. The pharmaceutical industry was initially exempted from these tariffs. However, that might not last long. President Donald Trump has officially announced that Pharmaceutical tariffs are coming soon. This will definitely have a severe impact on the industry and the pockets of Americans as well. If you are someone who wants to know more about how exactly the pharmaceutical tariffs will affect you, this article is for you. It brings you everything you need to know about Trump’s announcement of the upcoming pharmaceutical tariffs.
Trump Says Pharmaceutical Tariffs Will Be Announced Soon: What Trump Said About The Tariffs?
The National Republican Congressional Committee hosted a dinner at which Trump officially confirmed the upcoming pharmaceutical tariffs. During the dinner, he stated that the administration is going to announce very shortly a major tariff on pharmaceuticals. He further claimed that these countries will leave China and other places when they hear about it. Trump also mentioned how packages in the US, compared to London and other places, are sometimes 10 times more expensive. He explained how something that sells for $88 in London sells for $1,300 here, made in the same factory, by the same company.
Claims Companies Are Going To Come Rushing Back
President Trump also mentioned how other countries place restrictions on pharmaceutical companies which they eventually agree to as well. These companies sell their drugs at cheaper rates in those markets. Trump also claimed that once these pharmaceutical tariffs are imposed, such companies are going to come rushing back. This is because the United States is a big market. Trump explained how this factor is a major advantage for them.
Pharmaceutical Tariffs Impact On The Industry
The upcoming Trump pharmaceutical tariffs are going to severely impact the global pharmaceutical industry. However, the biggest losers in this are going to be the generic drug manufacturers. A huge segment of Americans relies on these low-cost drugs, 47% of which are manufactured in India. Most of these manufacturers are selling their products with low profit margins and some are operating at a loss. The upcoming tariffs will have them reconsider whether it’s even worth it to stay in the market. Mark Cuban, a generic drug manufacturer from Portugal, stated how his company operates on a 15% markup and cannot absorb any additional costs. Name-brand medications will also be highly impacted by the tariffs.
How Will It Impact Your Pocket?
The pharmaceutical tariffs are not only going to impact the industry but also the pockets of millions of American citizens. Industry experts say the imposition of tariffs will only end up raising the prices of life-saving medicines. This is because, even though the drug is manufactured in the United States, the main active ingredients of it are often imported from other countries. Cancer drug Imbruvica, for example, imports its key ingredient from China. Another example is the blood thinner Eliquis is considered to be entirely imported because its key ingredient is imported from Switzerland.
Orr Inbar, CEO of consultancy service Quanthealth, stated that the larger pharma companies may find themselves building multiple manufacturing facilities across the globe to avoid tariffs. It might help in mitigating the impact, but the prices will still rise. People who depend on generic drugs will also suffer the impact of the tariffs as the manufacturers reconsider their decision to stay in the markets.
