A proposed 25% tariff on U.S. pharmacy imports would drive up U.S. drug costs by $51 billion annually, according to an analysis by Ernst & Young reviewed by Reuters.
The April 22 analysis, commissioned by the Pharmaceutical Research and Manufacturers of America, found that the tariff, if passed on, could raise prices by 12.9%. It also found the U.S. imported $203 billion in pharmaceutical products in 2023, with 73% coming from European countries, including Ireland, Germany and Switzerland.
President Donald Trump has threatened to impose a 25% tariff on pharmaceutical imports, citing national security risks. In addition, the Trump administration recently launched a probe into pharmaceutical imports, with a 21-day public comment period.
The Ernst & Young report also said the tariffs on drug ingredients would cause U.S. manufacturing costs to rise by 4.1%. Around 25% of pharmaceutical production — $101 billion in 2023 — is exported.
The report did not account for potential retaliatory tariffs.
