Bloomberg reports that the Trump administration’s proposed tariffs on thousands of products imported from China would include dozens of drug components used by US manufacturers. Among the list of drug components to be targeted are the raw ingredients for the manufacture of epinephrine, the only drug that can halt the progression of anaphylaxis, a severe, life-threatening allergic reaction.
If enacted as proposed, a 25% tariff would be imposed on these drug ingredients which also include components for the manufacture of insulin, vaccines, blood products and a host of other meds, medical devices, and diagnostic equipment.
The additional costs incurred by drug manufacturers as a result of these tariffs would likely be passed on to consumers, though it is unclear how much of an increase they will bring at the pharmacy counter. The cost of ingredients for brand-name drugs is a small fraction of the final product cost while that fraction is much larger for generics.
Sources:
- Trump Tariffs Target Key Ingredients for Dozens of Drugs – Bloomberg
- Notice of Determination and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation – Office of the United States Trade Representative
