Exclusive-US pharma tariffs would raise US drug costs by $51 billion annually, report finds

Maggie Fick

Fri, Apr 25, 2025, 6:53 AM 3 min read

By Maggie Fick

LONDON (Reuters) -A 25% U.S. tariff connected pharmaceutical imports would summation U.S. cause costs by astir $51 cardinal annually, boosting U.S. prices by arsenic overmuch arsenic 12.9% if passed on, a study commissioned by the industry's U.S. commercialized radical and reviewed by Reuters shows.

The analysis, conducted by Ernst & Young, recovered the United States imported $203 cardinal successful pharmaceutical products successful 2023, with 73% coming from Europe -- chiefly Ireland, Germany and Switzerland. Total U.S. income of finished pharmaceuticals that twelvemonth were $393 billion.

The report, dated April 22 and not made public, was commissioned by the main U.S. pharmaceutical lobby, the Pharmaceutical Research and Manufacturers of America, whose members see Amgen, Bristol Myers Squibb, Eli Lilly, and Pfizer, among others.

PhRMA did not instantly respond to a petition for comment. The radical has argued tariffs would undermine efforts to boost home manufacturing, a extremity of U.S. President Donald Trump.

Pharmaceutical products person agelong been spared from commercialized wars owed to the imaginable harms, but helium has repeatedly threatened a 25% tariff connected pharmaceutical imports.

Last week, the Trump medication announced probes into pharmaceutical imports, citing nationalist information concerns implicit reliance connected overseas cause production.

The determination triggered a 21-day nationalist remark play arsenic portion of the probe led by the Commerce Department.

Drugmakers spot the probe arsenic a accidental to amusement the medication that precocious tariffs would hinder their efforts to swiftly ramp up U.S. production, and to suggest alternatives, said Ted Murphy, a commercialized lawyer astatine instrumentality steadfast Sidley Austin, which is advising companies connected their submissions to the Commerce Department.

Drugmakers person besides lobbied Trump to signifier successful tariffs connected imported pharmaceutical products successful hopes of reducing the sting from the charges.

On Thursday, Swiss drugmaker Roche said it is petitioning the U.S. authorities successful nonstop talks for import tariff exemptions, arguing the products it ships into the United States are offset by its exports of U.S.-made drugs and diagnostics.

Production costs are lone 1 origin shaping the terms of newer medicines and it is unclear to what grade tariffs connected imported intermediate inputs oregon imported finished products would beryllium passed guardant to consumers, the study said.

Tariffs connected imported finished products could beryllium passed done to consumers by the wholesale oregon retail distributors paying the tariff.

But if duties were afloat passed connected done higher prices connected home sales, EY estimates U.S. cause prices could emergence up to 12.9%.