A Drag On Drugs? Trump’s Tariffs Could Raise Costs, Particularly For Generics

21 Feb 2017

Drug makers remain mum on Trump tariffs despite worries that older generics could get squeezed. Landmark WHO study is adamant that tariffs should never be imposed on medicines.

President Trump’s threats of tariffs on China, Mexico and other US trading partners have triggered little, if any, public reaction from the pharmaceutical sector, while the promise of border-adjusted tax cuts from the House of Representatives at least drew some cautious applause in recent earnings calls. (See sidebar)

Privately, industry representatives worry that in the event Trump follows through on his threats, it could squeeze profits, particularly for...