Pharmaceuticals Exempt from Trump's Tariffs, Industry Faces Uncertainty

President Trump's sweeping tariff plan spares pharmaceuticals for now, but concerns linger over potential future trade actions and their impact on drug prices and supply chains.

• 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.

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