Overview

• President Trump's newly announced 10% baseline tariff on most imports excludes pharmaceuticals, temporarily shielding the industry from immediate economic disruption.
• The pharmaceutical industry remains cautious, as Trump has hinted at the possibility of future tariffs targeting drug imports, which could disrupt global supply chains.
• Analysts warn that tariffs on pharmaceuticals could significantly raise drug prices, particularly for generics, and exacerbate existing drug shortages in the U.S.
• The U.S. pharmaceutical sector heavily relies on imports, with 70% of drug ingredients sourced from China and 40% of generic drugs imported from India, making it vulnerable to trade disruptions.
• Revitalizing domestic pharmaceutical manufacturing to reduce reliance on imports would require substantial investment, technical expertise, and long-term commitment.