Overview

• The Trump administration is reportedly preparing to impose tariffs on global pharmaceutical imports, ending a long-standing exemption for the drug industry.
• This decision is expected to disrupt global supply chains and significantly raise drug prices in the United States as companies pass on increased costs to consumers.
• Key pharmaceutical exporters, including the UK and India, face substantial challenges, with generic drug manufacturers particularly vulnerable due to low profit margins.
• Major pharmaceutical companies are expanding domestic manufacturing and diversifying production to mitigate the impact of tariffs, with some investing heavily in U.S.-based facilities.
• Analysts warn that the tariffs could stifle innovation by forcing smaller companies into partnerships with larger firms, potentially consolidating market power and narrowing research focus.