Overview

• Chinese authorities have reportedly granted limited, drug-specific tariff exemptions for U.S. pharmaceutical imports, according to the American Chamber of Commerce in China.
• China's 125% tariffs on U.S. pharmaceutical products have already impacted major companies like Johnson & Johnson and Merck, which predict profit cuts.
• An Ernst & Young report projects that a 25% U.S. tariff on pharmaceutical imports could increase U.S. drug prices by up to 12.9%, costing consumers $51 billion annually.
• The Trump administration has launched a probe into pharmaceutical imports, citing national security concerns over reliance on foreign production, triggering a public comment period.
• Pharmaceutical companies, including Swiss drugmaker Roche, are lobbying for tariff exemptions and warning that tariffs could hinder domestic manufacturing and global competitiveness.