The Trump Administration has decided to double down on its plan to slap tariffs on pharmaceutical imports, as revealed from live coverage from the Guardian.
This follows Donald J. Trump's decision to place baseline tariffs of 10% on almost every US import — though pharmaceuticals are currently exempted from this cost.
“We’re going to put tariffs on the pharmaceutical companies, and they’re going to all want to come back,” he noted in a conversation with the press.
Following this news, Manufacturing Chemist spoke with AvaTrade’s Chief Market Analyst, Kate Leaman, about how these tariffs could impact the pharmaceutical industry, medicinal availability for US citizens and the global supply chain.
AKA: How will the tariffs impact pharmaceutical manufacturers across the globe?
KL: Even though finished drugs are technically currently exempt from some of the tariffs, the cost of doing business is going up. A blanket 10% tariff on all imports doesn't just hit the pills — it affects everything from the raw materials to machinery and packaging. For Indian and Chinese firms that supply the bulk of the world's active ingredients, this is a major financial strain.
To cope many drug companies will need to rethink their global strategies fast. That could mean shifting operations to other countries or doubling down on innovation to stay competitive; though this is easier said than done. Switching suppliers is tricky and involves the navigation of strict regulatory processes, as well as inspections and lots of time.
AKA: How will thse tariffs impact the availability of medicines to the US population?
KL: These tariffs are likely to make an already fragile situation worse. More than 90% of the prescriptions filled in the US are for generic medications, with a majority of these relying on ingredients made overseas — mainly in China and India. Now, with added tariffs on these imports, manufacturers operating on razor-thin margins may be pushed out of the market altogether. This could mean less producers, more bottlenecks and growing shortages for key medications such as antibiotics, cancer treatments and heart medication. 
In terms of the price of medications, Americans already pay nearly 3x what people in other high income countries do for prescription drugs. Adding higher production costs from tariffs to the mix makes it hard to see how this won't hit the consumer's wallet — especially for the generic medications so many rely on.
AKA: Do you believe these tariffs will contribute to supply chain instability?
KL: If we have learnt anything from the COVID-19 pandemic, it's that global supply chains are more fragile than we thought. When it comes to pharmaceuticals, the stakes are even higher. Concentrating production in a small number of regions such as China and India leaves the whole system exposed, and these tariffs just increase the risk of delays, shortages and higher costs.
Trying to bring drug manufacturing back to the US sounds great in theory, but in practice, it's a long road. It'll take years of infrastructure investment, workforce development and navigating red tape. In the meantime, companies may try short-term solutions like stockpiling ingredients or scrambling to find new partners in regions like Southeast Asia or Latin America.
AKA: Where does the pharmaeutical industry go from here, and how should companies approach the next few months/years?
KL: The next chapter for the industry is all about balancing quick fixes with smart, long-term moves. Right now, drug makers need to rethink where they source their raw materials; looking beyond China and India to places like Southeast Asia or Latin America. However, shifting suppliers takes time and cooperation with regulators — meaning costs are going up fast. Big pharmaceutical companies will likely manage for now, but generics — already stretched thin — could struggle. Some may have to cut back on research or staff just to stay afloat. Investing in automation could help, but that no small lift.
The industry can't just sit back, it has to push for policy changes, like tariff reliefs for essential drugs and support for building more manufacturing on US soil. Through it all, companies have to protect innovation. New medicines can't take a back seat. How the industry responds in the coming months will shape whether patients have affordable, reliable access to the treatments they need.