The pharmaceutical industry, along with the US government’s trade tariff, along with the US government, along with the US government to avoid 25%of tariffs on imported producers, along with EleenaPolis (IN, US), Pfizer (New York, New York, USA), and Merck & Co (New Jersey, New Jersey, New Jersey). I left the news about the news of trade tariffs.
The World Trade Organization Rules exempt most of the drugs and starting data from tariffs, but it is not clear whether the White House will continue to comply with this 30 -year -old contract. TRUMP suggested that the United States would impose 25%+ tariffs on the future after providing more time to build more manufacturing capacity to US companies at a press conference held in Mar-A-Lago in February 2025.
On March 4, 2025, Trump imposed tariffs on most of Canada, Mexico and China, 25%of Canada and Mexico, and doubled from 10%to 20%in China. These can be implemented at the beginning of April 2. Canada responded with a 25%tariff on various US products. Meanwhile, the United States and the EU are dealing with tariffs on metal and alcohol.
On February 26, ELI LILLY announced plans to build four manufacturing sites in the United States at least $ 27 billion. The three sites focus on the manufacture of Active Pharmaceutical (API) to effectively rescue the company’s small molecular API production. The fourth location expands the production of Lilly’s injection. Other contributions to investments include world demand for weight loss and diabetes drugs, Mounjaro and Zepbound (Tirzepatide).
Canada responded with 25%tariffs on various US products.
Pfizer is also considering moving overseas manufacturing to an existing factory in the United States. Albert Bourla, CEO of PFIZER, said on March 3, when tariffs begin at TD Cowen Healthcare Conference, “We will try to alleviate by transferring from the US manufacturing site to manufacturing site.” Bourla says, “Volatile… (…) We don’t know what’s going to happen (…) We don’t know if tariffs are in Canada, Mexico, or China, and clearly we don’t know what will happen in Europe, but now there is a different problem now.”
On March 11, 2025, MERCK & Co. opened a $ 1 billion manufacturing facility in North Carolina to promote the production of blockbuster HPV vaccines, Gardasil. MERCK explained, “We have focused on expanding domestic manufacturing, research and development functions and creating new jobs in the United States, with more than $ 12 billion in investing in US capital investment since 2018, and expected $ 8 billion in US capital investment by 2028.”
Pharmacy companies’ pressure continues to increase to the US to repatriate production to the United States, resulting in higher production costs and potentially influencing inflation in medical prices. Or if a pharmaceutical company cannot raise the price, the company’s profit can occur. Many Americans are already facing higher consumer price inflation and unemployment due to the dual effects of US government efficiency (DOGE) and trade tariffs, which reduces domestic demand for domestic products.
Retaliation tariffs can decrease exports
Drug prices can also be more prominent in the market. In the United States, price negotiations under inflation reduction can be much more firm.
The retaliatory tariffs imposed by the target countries can lead to the potential contraction of the US personnel of the company, which make US products less attractive and the most influenced by exports and the most influenced by exports.
Many generic manufacturers are based on China and India. Generic and biosimilar prescriptions account for 90%of the prescriptions filled in the United States. The lack of drugs was especially noticeable in 2024, and tariffs can worsen this problem in 2025. There will be serious confusion in the global supply chain.
It is difficult to predict how long the trade tariffs last and can make a deal to reduce potential confusion. However, this can be quite confusing for companies that want to supply the world’s largest pharmaceutical market and can be expensive for global consumers.
