Pharmaceutical tariffs will raise drug prices, unleash shortages, and drive down investment in research and development overnight. Ramping up America’s pharmaceutical manufacturing capacity is a worthy public policy goal. There are far less disruptive ways than tariffs to achieve that goal.
President Trump implemented a raft of tariffs this week. All imports are subject to a 10% import duty. Those from China are subject to a 145% tariff.
Pharmaceuticals appear to be exempt from the tariffs — for now. Drug manufacturers expect to get hit with tariffs at some point; they’re just not sure when. “We’ll be announcing pharmaceuticals at some point in the not too distant [future],” Trump said in late March.
It’s hard to see how tariffs on drugs will benefit Americans. Tariffs are just another name for taxes, after all. When government taxes something, the economy gets less of it.
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.
Pharmaceutical Tariffs Will Have Horrific Side Effects
Sally C. Pipes
Pharmaceutical tariffs will raise drug prices, unleash shortages, and drive down investment in research and development overnight. Ramping up America’s pharmaceutical manufacturing capacity is a worthy public policy goal. There are far less disruptive ways than tariffs to achieve that goal.
President Trump implemented a raft of tariffs this week. All imports are subject to a 10% import duty. Those from China are subject to a 145% tariff.
Pharmaceuticals appear to be exempt from the tariffs — for now. Drug manufacturers expect to get hit with tariffs at some point; they’re just not sure when. “We’ll be announcing pharmaceuticals at some point in the not too distant [future],” Trump said in late March.
It’s hard to see how tariffs on drugs will benefit Americans. Tariffs are just another name for taxes, after all. When government taxes something, the economy gets less of it.
Read the entire 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.