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.
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
