Overview

• The Trump administration launched a Section 232 investigation into pharmaceutical imports, citing national security concerns, with 25% tariffs expected by mid-May.
• An Ernst & Young report estimates the tariffs could increase U.S. drug costs by $51 billion annually and raise consumer prices by up to 12.9%.
• China, which imposed 125% retaliatory tariffs on U.S. medicines, has begun granting selective exemptions for certain pharmaceutical imports.
• Swiss drugmaker Roche is in direct talks with U.S. officials to secure tariff exemptions, citing the balance of its U.S. exports and imports.
• The tariffs are projected to raise U.S. pharmaceutical production costs by 4.1% and threaten a portion of the industry’s 490,000 export-related jobs.