United States of America

US Drug Tariffs Could Trigger $51B Price Surge, Industry Warns

Published APR 28 2025

Story

Above: A photo illustration of American dollar banknotes and medicines taken in Ankara, Turkey, on July 9, 2024. Image credit: Caglar Oskay/NurPhoto via Getty Images

The Facts

A proposed 25% tariff on pharmaceutical imports would increase annual U.S. drug costs by nearly $51 billion, raising domestic prices by 12.9%, according to an analysis by Ernst & Young.
Reuters
Global Banking And Finance Review
The report, which has not been made public and was seen exclusively by Reuters, found that the U.S. imported $203 billion in pharmaceutical products in 2023, with 73% coming from Europe, mainly Germany, Switzerland, and Ireland.
Reuters
The analysis was commissioned by the Pharmaceutical Research and Manufacturers of America (PhRMA), an American trade organization that represents leading U.S. companies in the pharmaceutical industry, including Amgen, Bristol Myers Squibb, Eli Lilly, and Pfizer.
Independent
The Telegraph
Reuters’ report on Ernst & Young’s findings follows warnings that the Trump administration could lift its tariff exemption on pharmaceuticals, with President Trump telling reporters in the Oval Office on April 9: “We're going to put tariffs on the pharmaceutical companies.”
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Elsewhere, the Trump administration announced an investigation “to determine the effects on the national security of imports of pharmaceuticals and pharmaceutical ingredients,” which could lead to tariffs “to protect national security.”
DEPARTMENT OF COMMERCE
Drug companies have urged the administration to phase in any new tariffs, with Swiss drugmaker Roche actively lobbying for exemptions. At the same time, industry leaders and experts warn that tariffs could disrupt supply chains, prices, and drug production, potentially leading to shortages.
Reuters
nytimes
The Economic Times

Sources Split

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RIGHT

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CRIT

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PRO
ESTAB

The Spin

Pro-Trump narrative

For too long the U.S. has watched its pharmaceutical industry be bought up by foreign interests and grow increasingly dependent on imported medicines. This is a blatant national security threat, making it imperative for the U.S. to bring drug production back home. If the Trump administration finds that tariffs are the best means to accomplish this, it will implement them.

DEPARTMENT OF COMMERCE

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Opposition narrative

There is a reason why tariffs on medicines are zero. If the Trump administration imposes tariffs on pharmaceuticals, it will be disastrous for the industry, disrupting supply chains, driving up prices, and hindering drug production, which will lead to ruinous shortages for millions of everyday Americans.

nytimes