A 25% tariff of the United States on pharmaceutical imports would increase the costs of medicines in the United States by almost $ 51 billion annually, which increases the prices of the United States by up to 12.9% if approved, a report commissioned by the American commercial group of the industry and reviewed by Reuters Sams.
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, dated 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 Amgn.O, Bristol Myers Squibb, Eli Lilly Lly.NY PFIZER PFE.N, among others.
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 due to potential damage, but has repeatedly threatened a 25% tariff on pharmaceutical imports.
Last week, the Trump administration announced probes about pharmaceutical imports, citing national security concerns about 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 rates 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 is advising companies in their presentations to the department of Eating.
Medication manufacturers have also pressed Trump to impose rates on imported pharmaceutical products with the hope of reducing charges.
On Thursday, the Swiss drug manufacturer Roche Rog.S said that he is asking the United States government to direct conversations for import rates exemptions, 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 newer medications and is not clear to what extent tariffs on imported intermediate entries or imported finished products would go 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 completely transmitted through higher prices in national sales, he 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 costs of higher supplies weaken the foreign demand of 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.
