A proposal rate of 25% of the United States on pharmaceutical imports could increase the annual costs of medicines by almost $ 51 billion, which increases consumer prices by up to 12.9%, according to an Ernst & Young report commissioned by PHRMA. | Photo credit: Istockphoto
A 25% tariff of the United States on pharmaceutical imports would go to the costs of medicines by almost $ 51 billion annually, which increases US prices. UU. In 12.9% if approved, a report commissioned by the American commercial group of the industry and reviewed the Byterde traders.
The analysis, carried out by Ernst & Young, found that the United States imported $ 203 billion in pharmaceutical products in 2023, with 73% from Europe, mainly Ireland, Germany and Switzerland. Total sales of the United States of pharmaceutical products finished that year were $ 393 billion.
The report, dating from April 22 and was not made public, was commissioned by the main pharmaceutical lobby of the United States, pharmaceutical research and manufacturers in America, whose members include Amgen, Bristol Myers Squibb, Eli Lilly and Pfizer, between.
Phrma did not immediately respond to a comment request. The group has argued that tariffs would undermine efforts to boost national manufacturing, an objective of the president of the United States, Donald Trump.
Pharmaceutical products have long been saved from commercial wars
Last week, the Trump administration announced probes about pharmaceutical imports, citing national security conerns on the dependence on foreign drug production.
The measure triggered a period of public comments of 21 days as part of the investigation led by the Department of Commerce.
Medication manufacturers see research as an opportunity to show the administration that high tariffs would hinder their efforts to quickly increase US production and propose alternatives, said Ted Murphy, a commercial lawyer of the law firm Sidley Austin, who are the advice colleagues.
Drug manufacturers have also pressed Trump to impose rates on imported pharmaceutical products in the hope of reducing charges.
On Thursday, the Swiss drug manufacturer Roche said he is asking the United States government to direct conversations for import rates, arguing that the products he sends to the United States are compensated by their exports of medicines and diagnoses manufactured in the United States.
Production costs are only a factor that shapes the price of Duta medications and is not clear to what extent tariffs on imported intermediate entries or imported finished products would pass to consumers, according to the report.
Tariffs on imported finished products could pass consumers through wholesale or retail distributors paying the rate.
But if the duties were transmitted through higher prices in national sales, EY estimates that the prices of US drugs could increase up to 12.9%.
Approximately 30% of pharmaceutical imports in 2023 were ingredients used in the manufacture of the United States and then exported or sold in the United States.
Tariffs on these would increase national production costs by 4.1% and reduce the global competitiveness of medicines made in the United States, according to the report.
Approximately 25% of the American pharmaceutical production is exported, which totaled $ 101 billion in 2023. He said that a part of the 490,000 jobs related to export in the industry could be at risk if the highest demand for supplies costs for US medications.
The report did not include the impact of possible retaliation rates. The economic impact of those for American producers would be much more significant.
Posted on April 25, 2025