Proposed 25% Tariffs Could Increase US Drug Costs by $51B Annually

A proposed 25% U.S. tariff on pharmaceutical imports could increase U.S. drug costs by nearly $51 billion annually, potentially raising consumer prices by up to 12.9% if the costs are passed on. The U.S. imported $203 billion in pharmaceuticals in 2023, with most coming from Europe, underscoring the country's reliance on foreign sources for essential medicines. The Pharmaceutical Research and Manufacturers of America (PhRMA) and major drugmakers have warned that such tariffs would undermine efforts to boost domestic production, a key goal cited by former President Trump, and could harm both industry and consumers. The Trump administration has launched a probe into pharmaceutical imports citing national security concerns, triggering a 21-day public comment period. Drugmakers are lobbying for a phased approach or exemptions to mitigate potential negative impacts, and some are highlighting their own exports as justification for relief. The possibility of tariffs has also raised concerns about potential job losses and disruptions to pharmaceutical supply chains.