Watchdog Warns Against New Drug Tariffs

FOR IMMEDIATE RELEASE

Contact: Kara Zupkus (224)-456-0257

WASHINGTON, D.C. – Today, the Taxpayers Protection Alliance criticized the Trump administration for announcing plans to introduce 100 percent tariffs on imported branded pharmaceuticals. On September 25, President Trump announced the tariffs, set to apply to “any branded or patented Pharmaceutical Product,” unless the company is breaking ground or constructing manufacturing plants in the U.S.

In response, Ross Marchand, Senior Fellow at the Taxpayers Protection Alliance, offered the following comment:

“Millions of patients in the U.S. depend on lifesaving cures. Drug manufacturers work arduously to deliver those cures every day. These products, and the raw materials used to make them, often come from other countries, reflecting a dynamic and innovative system of free trade. Many U.S. firms operate global supply chains, sourcing raw materials or active pharmaceutical ingredients from abroad before scaling production domestically. Taxing this global system will only result in fewer choices for patients and higher costs at the pharmacy counter, at a time when bills are already way too high.

“The evidence is clear: taxing pharmaceutical imports is a recipe for disaster. An April 2025 Ernst & Young analysis found that a 25 percent tariff on pharmaceutical imports could raise U.S. drug costs by $51 billion a year and increase prices by as much as 12.9 percent. Quadrupling that rate will only quadruple the pain for consumers – if not more so. President Trump claims that companies producing domestically will be spared. However, this exception doesn’t cover the numerous complex cases of American businesses partnering with companies abroad. Consumers will inevitably bear the brunt of these tariffs despite the President’s assurances.

“President Trump should spare patients by ending these tariffs before they begin. Bringing down drug prices requires comprehensive reforms to the Food and Drug Administration, rebate reform, and lowering barriers to entry, not taxes on consumers. We urge the President to let markets work and reject this tax.”