​Weaponising health care: On the Trump tariffs on imported medicines   | Current Affairs | Vision IAS

Daily News Summary

Get concise and efficient summaries of key articles from prominent newspapers. Our daily news digest ensures quick reading and easy understanding, helping you stay informed about important events and developments without spending hours going through full articles. Perfect for focused and timely updates.

News Summary

Sun Mon Tue Wed Thu Fri Sat

​Weaponising health care: On the Trump tariffs on imported medicines  

2 min read

Impact of U.S. Tariffs on Imported Medicines

The U.S. President's decision to impose 100% tariffs on imports of branded and patented medicines has significant implications for healthcare access in America. Prescription drugs account for approximately 10% of household medical care spending.

Key Aspects and Implications

  • The tariffs, effective October 1, will particularly affect drugs from the European Union and Japan, which together account for nearly three-quarters of pharma imports.
  • Drugs affected include patented medicines such as Wegovy and Ozempic, with severe implications for patients requiring specialized treatments like cancer or rare disease drugs.
  • The health insurance sector could see increased costs as firms pass on higher prices to policyholders.
  • An Ernst & Young study indicates a potential $51 billion increase in annual drug costs with a 25% tariff on patented drugs.

Global Impact

  • Countries not exempt, such as the U.K., Switzerland, and Singapore, face a 100% tariff burden on pharma products, potentially increasing their costs.
  • India's generics industry, accounting for 90% of U.S. prescriptions, is currently unaffected by the tariffs, with exports exceeding $10.5 billion to the U.S. in FY25.
  • There is uncertainty regarding whether Active Pharmaceutical Ingredients (APIs), predominantly supplied by India and China, will be subject to tariffs.

Economic and Political Considerations

  • The U.S. remains a major exporter of innovative medicines, and how these tariffs will affect the competitiveness of U.S. exports is unclear.
  • The influential PhRMA body has opposed the tariffs, warning of increased costs for patients without addressing structural issues in the supply chain.
  • The move signals a shift in global supply chains influenced by emerging political realities, urging countries to diversify trade alliances and markets.
  • Tags :
  • U.S. Tariffs
Subscribe for Premium Features

Quick Start

Use our Quick Start guide to learn about everything this platform can do for you.
Get Started