No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Tuesday, October 7, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Trump plans a hefty tax on imported drugs, risking higher prices and shortages

by TheAdviserMagazine
1 month ago
in Business
Reading Time: 4 mins read
A A
Trump plans a hefty tax on imported drugs, risking higher prices and shortages
Share on FacebookShare on TwitterShare on LInkedIn



WASHINGTON (AP) — President Donald Trump has plastered tariffs on products from almost every country on earth. He’s targeted specific imports including autos, steel and aluminum.

But he isn’t done yet.

Trump has promised to impose hefty import taxes on pharmaceuticals, a category of products he’s largely spared in his trade war. For decades, in fact, imported medicine has mostly been allowed to enter the United States duty free.

That’s starting to change. U.S. and European leaders recently detailed a trade deal that includes a 15% tariff rate on some European goods brought into the United States, including pharmaceuticals. Trump is threatening duties of 200% more on drugs made elsewhere.

“Shock and awe’’ is how Maytee Pereira of the tax and consulting firm PwC describes Trump’s plans for drugmakers. “This is an industry that’s going from zero (tariffs) to the potentiality of 200%.’’

Trump has promised Americans he’ll lower their drug costs. But imposing stiff pharmaceutical tariffs risks the opposite and could disrupt complex supply chains, drive cheap foreign-made generic drugs out of the U.S. market and create shortages.

“A tariff would hurt consumers most of all, as they would feel the inflationary effect … directly when paying for prescriptions at the pharmacy and indirectly through higher insurance premiums,’’ Diederik Stadig, a healthcare economist with the financial services firm ING, wrote in a commentary last month, adding that lower-income households and the elderly would feel the greatest impact.

The threat comes as Trump also pressures drugmakers to lower prices in the United States. He recently sent letters to several companies telling them to develop a plan to start offering so-called most-favored nation pricing here.

But Trump has said he’d delay the tariffs for a year or a year and a half, giving companies a chance to stockpile medicine and shift manufacturing to the United States — something some have already begun to do.

Leerink Partners analyst David Risinger said in a July 29 note that most drugmakers have already increased drug product imports and may carry between six and 18 months of inventory in the U.S.

Jefferies analyst David Windley said in a recent research note that tariffs that don’t kick in until the back half of 2026 may not be felt until 2027 or 2028 due to stockpiling.

Moreover, many analysts suspect Trump will settle for a tariff far lower than 200%. They also are waiting to see whether any tariff policy includes an exemption for certain products like low-margin generic drugs.

Still, Stadig says, even a 25% levy would gradually raise U.S. drug prices by 10% to 14% as the stockpiles dwindle.

In recent decades, drugmakers have moved many operations overseas – to take advantage of lower costs in China and India and tax breaks in Ireland and Switzerland. As a result, the U.S. trade deficit in medicinal and pharmaceutical products is big — nearly $150 billion last year.

The COVID-19 experience – when countries were desperate to hang onto their own medicine and medical supplies — underscored the dangers of relying on foreign countries in a crisis, especially when a key supplier is America’s geopolitical rival China.

In April, the administration started investigating how importing drugs and pharmaceutical ingredients affects national security. Section 232 of the Trade Expansion Act of 1962 permits the president to order tariffs for the sake of national security.

Marta Wosińska, a health policy analyst at the Brookings Institution, says there is a role for tariffs in securing U.S. medical supplies. The Biden administration, she noted, successfully taxed foreign syringes when cheap Chinese imports threatened to drive U.S. producers out of business.

Trump has bigger ideas: He wants to bring pharmaceutical factories back to the United States, noting that U.S.-made drugs won’t face his tariffs.

Drugmakers are already investing in the United States.

The Swiss drugmaker Roche said in April that it will invest $50 billion in expanding its U.S. operations. Johnson & Johnson will spend $55 billion within the United States in the next four years. CEO Joaquin Duato said recently that the company aims to supply drugs for the U.S. market entirely from sites located there.

But building a pharmaceutical factory in the United States from scratch is expensive and can take several years.

And building in the U.S. wouldn’t necessarily protect a drugmaker from Trump’s tariffs, not if the taxes applied to imported ingredients used in the medicine. Jacob Jensen, trade policy analyst at the right-leaning American Action Forum, notes that “97% of antibiotics, 92% of antivirals and 83% of the most popular generic drugs contain at least one active ingredient that is manufactured abroad.’’

“The only way to truly protect yourself from the tariffs would be to build the supply chain end to end in the United States,’’ Pereira said.

Brand-name drug companies have fat profit margins that provide flexibility to make investments and absorb costs as Trump’s tariffs begin. Generic drug manufacturers do not.

Some may decide to leave the U.S. market rather than pay tariffs. That could prove disruptive: Generics account for 92% of U.S. retail and mail-order pharmacy prescriptions.

A production pause at a factory in India a couple years ago led to a chemotherapy shortage that disrupted cancer care. “Those are not very resilient markets,” Brookings’ Wosińska said. “If there’s a shock, it’s hard for them to recover.”

She argues that tariffs alone are unlikely to persuade generic drug manufacturers to build U.S. factories: They’d probably need government financing.

“In an ideal world, we would be making everything that’s important only in the U.S.,’’ Wosińska said. “But it costs a lot of money … We have offshored so much of our supply chains because we want to have inexpensive drugs. If we want to reverse this, we would really have to redesign our system … How much are we willing to spend?”

___

Murphy reported from Indianapolis. AP Health Writer Matthew Perrone contributed to this report.



Source link

Tags: drugsheftyhigherimportedplansPricesRiskingShortagestaxTrump
ShareTweetShare
Previous Post

Of Property Rights, Civil Society, and Shampoo

Next Post

OpenAI staffer left America for Sweden because of Trump’s presidency

Related Posts

edit post
Entrepreneur says Goldman Sachs once gave him 39 separate interviews to land the job—and the decisive conversation was less than a minute

Entrepreneur says Goldman Sachs once gave him 39 separate interviews to land the job—and the decisive conversation was less than a minute

by TheAdviserMagazine
October 7, 2025
0

Sharran Srivatsaa, president of Acquisition.com and a former Goldman Sachs investment banker, recently shared a story on TikTok about how...

edit post
Morgan Stanley stake and a 75% upside call: Why this newly listed stock is drawing attention

Morgan Stanley stake and a 75% upside call: Why this newly listed stock is drawing attention

by TheAdviserMagazine
October 7, 2025
0

Pace Digitek, a recently listed renewable and telecom infrastructure company, is in the spotlight after global investment giant Morgan Stanley...

edit post
Talen Energy secures .2bn in financing for two power plant acquisitions

Talen Energy secures $1.2bn in financing for two power plant acquisitions

by TheAdviserMagazine
October 7, 2025
0

Talen Energy Supply, a subsidiary of Talen Energy Corporation, has secured $1.2bn in term loan B financing to support the...

edit post
Previous winners of the Nobel Peace Prize

Previous winners of the Nobel Peace Prize

by TheAdviserMagazine
October 7, 2025
0

The winner of the 2025 Nobel Peace Prize will be announced on Friday in Oslo. Here are some of the...

edit post
Indian IT sector: Tech sector rally: Tactical moves or fundamental shift? Insights from Sandip Agarwal

Indian IT sector: Tech sector rally: Tactical moves or fundamental shift? Insights from Sandip Agarwal

by TheAdviserMagazine
October 7, 2025
0

The Indian IT sector is under scrutiny as the earnings season kicks off. ET Now recently spoke with market expert...

edit post
KPMG chief on CEOs’ uncertainty on tariffs, the emerging AI ‘hourglass’ org shape and the thing ‘that honestly keeps me up at night’

KPMG chief on CEOs’ uncertainty on tariffs, the emerging AI ‘hourglass’ org shape and the thing ‘that honestly keeps me up at night’

by TheAdviserMagazine
October 7, 2025
0

KPMG’s CEO Outlook survey offers an annual look behind the curtain at the issues keeping the top business leaders up...

Next Post
edit post
OpenAI staffer left America for Sweden because of Trump’s presidency

OpenAI staffer left America for Sweden because of Trump's presidency

edit post
*HOT* Factor Meal Discount: 0 off + Free Shipping!!

*HOT* Factor Meal Discount: $130 off + Free Shipping!!

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
Episode 229. “I’m almost 50 and have nothing to show for my life”

Episode 229. “I’m almost 50 and have nothing to show for my life”

0
edit post
Meet the Dutch companies that raised the 10 biggest funding rounds in Q3 2025; 7 are hiring right now

Meet the Dutch companies that raised the 10 biggest funding rounds in Q3 2025; 7 are hiring right now

0
edit post
EUR/USD: Head and Shoulders Pattern Suggests Bears May Target 1.16–1.14 Zone

EUR/USD: Head and Shoulders Pattern Suggests Bears May Target 1.16–1.14 Zone

0
edit post
CFP Board conference explores multigenerational RIAs

CFP Board conference explores multigenerational RIAs

0
edit post
Morgan Stanley stake and a 75% upside call: Why this newly listed stock is drawing attention

Morgan Stanley stake and a 75% upside call: Why this newly listed stock is drawing attention

0
edit post
Social Security Reforms Could Be on the Way—Here’s What Real Estate Investors Need to Know

Social Security Reforms Could Be on the Way—Here’s What Real Estate Investors Need to Know

0
edit post
Here’s The Best Time To Buy Bitcoin As Impulse Wave Sets Path To 0,000

Here’s The Best Time To Buy Bitcoin As Impulse Wave Sets Path To $150,000

October 7, 2025
edit post
EUR/USD: Head and Shoulders Pattern Suggests Bears May Target 1.16–1.14 Zone

EUR/USD: Head and Shoulders Pattern Suggests Bears May Target 1.16–1.14 Zone

October 7, 2025
edit post
Episode 229. “I’m almost 50 and have nothing to show for my life”

Episode 229. “I’m almost 50 and have nothing to show for my life”

October 7, 2025
edit post
Entrepreneur says Goldman Sachs once gave him 39 separate interviews to land the job—and the decisive conversation was less than a minute

Entrepreneur says Goldman Sachs once gave him 39 separate interviews to land the job—and the decisive conversation was less than a minute

October 7, 2025
edit post
Meet the Dutch companies that raised the 10 biggest funding rounds in Q3 2025; 7 are hiring right now

Meet the Dutch companies that raised the 10 biggest funding rounds in Q3 2025; 7 are hiring right now

October 7, 2025
edit post
Morgan Stanley stake and a 75% upside call: Why this newly listed stock is drawing attention

Morgan Stanley stake and a 75% upside call: Why this newly listed stock is drawing attention

October 7, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Here’s The Best Time To Buy Bitcoin As Impulse Wave Sets Path To $150,000
  • EUR/USD: Head and Shoulders Pattern Suggests Bears May Target 1.16–1.14 Zone
  • Episode 229. “I’m almost 50 and have nothing to show for my life”
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.