Tariff on pharmaceuticalsFirst, President Trump has voiced his goal to put tariffs on drug products made abroad. New York Times report:
Mr. Trump commented on Monday to reporters that pharmaceutical tariffs would come in “not far away future”.
“We no longer make our own medicines,” said Mr. Trump. “Pharmaceutical companies are in Ireland, and they are in a lot of other places, China.”
While some drugs are made in the minimum part in the United States, America’s dependence on China for drugs has created alarm for years, both Republicans and Democrats recognize it as national security vulnerability.
Many drugs are not produced without at least one phase of the manufacturing process in China. Even India’s vast generic drug sector is deeply dependent on China, as Indian manufacturers usually get their raw materials from Chinese plants.
What are possible implications? High prices and reduction:
The raw material of almost all drugs is made abroad, even for drugs manufactured in the US, which means tariffs can increase the cost of many drugs, including over-the-counter pain relieving drugs as well as antibiotics, cardiovascular drugs and asthma.
Experts at pharmacy and economics stated that such tariffs can lead to a lack of drugs and even possible research and development.
Elimination of ‘Pill Penalty’ under IraThe purpose of Trump’s executive order will be to eliminate the difference in the time of interaction between small molecules and biology. I covered it here in the first week.
Pre-American drug ability to increase importsWhile on one hand Trump is proposing to put tariffs on pharmaceuticals built outside the US, he also called to allow more drug imports. In particular, their executive order makes the secretary easier to obtain approval for states without renunciation of security or quality for states to streamline and improve the import program under Section 804 of the Cosmetic Act. “
In other news, Attorney General is calling for Congress Ban PBM from owning affiliated pharmacies,
Certainly a lot of health policy is going on in space this week!
