Tariffs To Hike U.S. Drug Costs By $51-B Annually, Report Finds

A proposed 25% tariff on pharmaceutical imports could raise U.S. drug costs by nearly $51 billion annually, boosting prices by up to 12.9% if fully passed on to consumers, Maggie Fick reported for Reuters.

Pharmaceuticals have traditionally been spared from trade wars, but Trump’s administration recently launched probes into drug imports over national security concerns. I Photo: CVS Pharmacy / Target

An analysis by Ernst & Young, commissioned by the Pharmaceutical Research and Manufacturers of America (PhRMA), found that the U.S. imported $203 billion worth of pharmaceuticals in 2023, with 73% coming from Europe — mainly Ireland, Germany, and Switzerland. U.S. finished pharmaceutical sales totaled $393 billion that year.

PhRMA argues the tariffs would undermine efforts to strengthen domestic manufacturing — a key goal of President Trump — and warns of severe consequences.

Pharmaceuticals have traditionally been spared from trade wars, but Trump’s administration recently launched probes into drug imports over national security concerns, triggering a 21-day public comment period.