Hey folks! Heads up on a major shake-up in the pharma world: US President Donald Trump announced a 100% tariff on branded and patented drugs made outside the US by firms that don’t set up shop domestically. 😲💊
The plan, slated to kick in this Wednesday, was reportedly paused last week. But the buzz has already rippled through pharma corridors, with experts warning of steeper prices and R&D slowdowns.
PhRMA, the big US pharma lobby group, called it a "double whammy"—every dollar sunk into tariffs is a dollar lost for building factories or discovering new cures on home soil. 💡❌
Eli Lilly, even though it’s exempt, chimed in too: tariffs on life-saving meds could end up hiking costs for patients. More price tags, more headaches, right?
Smaller players might feel the pinch hardest. Many niche drugmakers rely on Mexico and Canada for production and can’t just pour billions into new US plants overnight. 💸
The ripple extends overseas: Australia’s Health Minister Mark Butler pointed out that the US buys way more pharma products from Australia than it sells there, warning of higher costs for American consumers. Even Germany’s VFA trade group flagged a big setback for Europe’s pharma hubs.
Long story short: slapping tariffs on medicines could spark supply chain chaos and hit pockets around the globe. Stay tuned as this story unfolds! 🌏✨
Reference(s):
U.S. drug tariffs raise fears of higher prices and supply disruptions
cgtn.com
