Trump tariffs on pharma seen hiking US drug costs by $51 bn, says EY

Trump’s tariff of 25% on pharmaceutical imports would increase US drug costs by nearly $51 billion annually, boosting US prices by as much as 12.9% if passed on, according to a report commissioned by the main US pharmaceutical lobby, the Pharmaceutical Research and Manufacturers of America (PhRMA), and conducted by Ernst & Young (EY). It found the United States imported $203 billion in pharmaceutical products in 2023, with 73% coming from Europe — primarily Ireland, Germany and Switzerland. Total US sales of finished pharmaceuticals that year were $393 billion. Tariffs on imported finished products could be passed through to consumers by the wholesale or retail distributors paying the tariff. But if duties were fully passed on through higher prices on domestic sales, EY estimates US drug prices could rise up to 12.9%, as per a report.