Tariffs on medicines would harm American competitiveness, industry and patients

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PhRMA submitted comments to the U.S. Department of Commerce on its Section 232 investigation of pharmaceuticals and pharmaceutical ingredients imported to the United States.

Tariffs on the biopharmaceutical industry would threaten continued investment and medical progress. Every dollar spent on tariffs is a dollar that can’t be spent on developing tomorrow’s treatments and cures or on U.S. manufacturing.

America’s innovative biopharmaceutical industry shares the Trump administration’s goal of bolstering American manufacturing and workers. The United States is the world leader in biopharmaceutical innovation and manufacturing and companies have recently announced hundreds of billions of dollars in additional investments in America.

The industry supports more than 4.9 million jobs across the United States, contributes $1.7 trillion in economic output and is the global leader in medical research.

Here are three things to know about biopharmaceutical manufacturing:

Most innovative medicines taken in America are made in America. Nearly two-thirds of the medicines that are consumed in the U.S. and 53% of the active pharmaceutical ingredients used in U.S.-consumed innovative medicines are produced in the United States.
Tariffs on medicines and their inputs would not enhance national security. When innovative medicines or their inputs are sourced from other countries, these products overwhelmingly come from reliable U.S. allies and do not threaten national security. Implementing tariffs on medicines and inputs from allies could thwart industry investment, limit American patients’ access to innovative medicines and hurt U.S. competitiveness.
Supply chains for the innovative biopharmaceutical industry are resilient. The industry has established supply chains that ensure patients have access to safe and high-quality medicines. Robust and diverse supply chains reduce disruptions and mean that patients can access needed medicines even in times of emergency.

At a time when the United States is facing increased competition from China, the Administration should be focused on policies that ensure that the United States is the best place in the world to discover and manufacture innovative medicines. Imposing tariffs on medicines would be counterproductive to the Administration’s goal of bolstering American industry.

Hannah Loiacono

Hannah Loiacono is a director of public affairs at PhRMA, where she leads communications on PhRMA’s international priorities. Before joining PhRMA, she worked for a public affairs firm where she primarily supported health care related communications and research. Outside of the office, Hannah enjoys exploring Washington, D.C. with her dog Earl, attending concerts and cooking.

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