Tariffs are a tax. They squeeze consumers, create market inefficiencies, and increase costs for businesses and consumers. They threaten to halt much of the growth that President Trump’s One Big Beautiful Bill could facilitate in the years to come. And they’ll make Americans sicker, poorer, and less innovative.
President Trump has recently struck trade agreements with the European Union and Japan. Both deals will impose a 15 percent tariff on imported prescription drugs and active pharmaceutical ingredients.
White House officials believe these tariffs will benefit Americans by nudging pharmaceutical companies to relocate their manufacturing operations stateside in order to avoid the tariff.
But they are mistaken. These tariffs will raise costs for American manufacturers, insurers, and patients alike. As a result, they’ll make our biotech industry less competitive and force companies to scale back research.
President Trump needs to reverse course — and at the very least exempt medicines from the tariffs.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
The New Medicine Tariffs Are a Prescription for Disaster
Sally C. Pipes
Tariffs are a tax. They squeeze consumers, create market inefficiencies, and increase costs for businesses and consumers. They threaten to halt much of the growth that President Trump’s One Big Beautiful Bill could facilitate in the years to come. And they’ll make Americans sicker, poorer, and less innovative.
President Trump has recently struck trade agreements with the European Union and Japan. Both deals will impose a 15 percent tariff on imported prescription drugs and active pharmaceutical ingredients.
White House officials believe these tariffs will benefit Americans by nudging pharmaceutical companies to relocate their manufacturing operations stateside in order to avoid the tariff.
But they are mistaken. These tariffs will raise costs for American manufacturers, insurers, and patients alike. As a result, they’ll make our biotech industry less competitive and force companies to scale back research.
President Trump needs to reverse course — and at the very least exempt medicines from the tariffs.
Read the op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.