Pharmaceutical products shelf.
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President Donald Trump announced on Thursday that the United States will impose a 100 % tariff on “any patented patented or patented” patented “enters the country from October 1.
Trump said that the procedure will not apply to companies that build medicine manufacturing factories in the United States. He added that the exemption covers the projects in which construction began, including the sites that were destroyed or under construction.
“There will be no tariff for these pharmaceutical products if construction begins,” Trump said in a post. Social truth.
Patent or patented drug products are drugs that are sold under commercial names and protected by patents or other intellectual property, which prevent public competition until this protection ends.
Trump said that the customs tariff will motivate pharmaceutical companies to transfer manufacturing operations to the United States, which is an effort Eli Lilyand Johnson and Johnsonand Exhausted Others are already following a time when the manufacture of local drugs has been dramatically decreased over the past few decades.
CNBC communicates with the main drug makers to comment on the tariffs, but he did not receive an immediate response.
American imports of pharmaceutical preparations amounted to approximately $ 213 billion in 2024, approximately three times a decade ago, according to the United Nations database data.
In April, the Trump administration started with the so -called Article 232 investigation In pharmaceutical products, which allow the Minister of Commerce to examine the impact of imports on national security. The president likewise used that authority to impose definitions on other commodities, such as cars and aluminum.
The long -awaited definitions deal with pharmaceutical companies, which have many of them I pushed back And warned that the fees could increase costs, deter Investments In the United States, the drug supply chain is obstructed, ultimately patients are at risk.
in General comments To the government in May, Eli Lily said that the customs tariff “will deprive manufacturers of the capital needed to innovate and invest in re -equipment” because it will redirect capital to rid the impact of fees. This was among the hundreds of comments issued by the Ministry of Commerce in late May regarding its 232 achievement in the pharmaceutical industry.
Some health policy experts also say that this step can disrupt the supply chain of medicines at the expense of American patients, which increases the costs of treatments or even aggravating the lack of medicines that the nation suffers from. Pharmaceutical makers often depend on a global network of manufacturing sites for different steps of the production process.
There is “the possibility of high prices for prescribed drugs in an environment in which we are already pressing very hard to try to reduce these prices.”
She added that there are “many general medications specifically that can make decisions between unanimous and withdrawal from the entire market.”
Tariff
Fees are less than a tariff rate of up to 250 % on the pharmaceutical preparations that Trump put in August in an interview with CNBC’s “Squawk box.” Trump said that he will initially impose a “small tariff” on medications, but then in a year to a year and a half “the maximum”, this rate will rise to 150 % and 250 %.
The industry is already moving in Trump’s repercussions Suggested drug pricing policiesWho argues medicine makers threatening all of them and their ability to invest in research and development, and tremendous reform in the Ministry of Health and Humanitarian Services in light of the prominent vaccines Robert F. Kennedy Junior.
It is the latest development in Trump’s advanced tariff policy, which aims to re -manufacture in the United States
New duties follow Fresh launch National security investigations He announced on Wednesday in robots imports, industrial machinery and medical devices.
The latest investigations by the Ministry of Commerce expanded the list of goods that may face a higher tariff to include personal protection equipment such as surgical masks, N95 respirators, gloves and other medical consumables, including syringes and needles.
Any new duties resulting from the sector’s investigations will be stacked at the top of the country’s TROMP definitions, although the European Union and Japan have reached agreements that can protect them from additional fees.
Change manufacturing
Analysts raised fears that it will be difficult to reshape the country, which will be expensive and may take several years.
“Global supply chains are complicated, with medicines among the most – not simple as the move as someone does nails in small nails to make iPhone,” said Ivan Sigramman, an analyst at BMO MARKETS in April.
He said that the customs tariff “is likely to do little to change manufacturing” to the United States because companies have already have strong operations in the country.
Siggerman said that most large pharmaceutical companies are expected to determine “waiting until the end of Trump’s presidency to consider permanent manufacturing decisions.”
J & J in March as well He announced a new investment of $ 55 billion In the United States, manufacturing, research, development and technology over the next four years.
In April, J & J said it expects to register a $ 400 million tariff expenses in 2025, which reflects the fees that were already announced and do not predict the effects of the definitions of pharmaceutical preparations. Executive officials in the profit call at the time said it was primarily related to the company’s medical equipment products.
Other companies, including VizarHe owns The fees were also recorded Regarding the definitions announced by Trump in April.
The CEO of J& J Joaquin Duato has repeated the warnings of health policy experts.
Duato said during the call: “There is a reason … Why is the pharmaceutical tariff are zero. Because the definitions can create disturbances in the supply chain, which leads to a deficiency,” Duato said during the call. He added that favorable tax policies will be a more effective tool to enhance the ability of American manufacturing for both medicines and medical devices.
Some drug makers, such as Eli Lily, Bristol Mairescape and ExhaustedSteve Scala, a TD Cowen analyst in April, said that he might be in a better position than others on the weather tariff because they have more major manufacturing factories in the United States more than the world. He added that the majority of their sites responsible for producing active ingredients in drugs are also present in the United States.
During, Novartis and Rush “Look more dangerous” because they have a few American plants and a higher share of active ingredients that are international.
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