US Commerce Dept investigation lays ground for pharma tariffs

The US Department of Commerce issued a public notice announcing a “232 investigation” that is a precursor to expected tariffs on pharmaceuticals.
The investigation, under Section 232 of the Trade Expansion Act, is meant to determine the effects of pharmaceuticals and pharmaceutical ingredients on US national security, according to the announcement.

Reviewing why this matters, the US trade group Biotechnology Innovation Organization (BIO) noted that President Trump said tariffs would encourage more drug manufacturing in the USA. Last year’s BIO member survey found that reshoring or “friend-shoring” manufacturing could take eight years. BIO’s survey last month showed tariffs would threaten our national security, harm investment, cause disruption in our supply chains, and reduce patient access to medicine.

94% of biotech firms anticipate surging manufacturing costs from tariffs on the EU, while tariffs on Canada and China would have a similar impact. “More than 50% of biotech firms predict ‘increased difficulty’ in funding and conducting research if EU tariffs are enacted,” the survey found.

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