Overview

• The U.S. Department of Commerce is conducting a Section 232 investigation into the national security risks of relying on imported pharmaceuticals and active pharmaceutical ingredients (APIs).
• President Trump has signaled plans for significant tariffs to incentivize domestic drug production, with potential policy recommendations expected from the probe.
• Industry groups warn that tariffs could exacerbate medicine shortages, increase costs for U.S. patients, and reduce funding for pharmaceutical research and development.
• The UK government is in discussions with pharmaceutical firms to address potential impacts of U.S. tariffs and ensure medicine supply continuity.
• Exiger's report highlights U.S. dependency on China and India for 75% of essential medicines, raising concerns over forced labor and quality control issues in supply chains.