In a comment submitted to the Department of Commerce, PhRMA Executive Vice President of International Advocacy Jay Taylor advised against enforcing tariffs, saying trade barriers in market should be addressed through “negotiation and enforcement of robust bilateral and sectoral agreements.”
The Commerce Department is currently carrying out an investigation into pharmaceutical and pharmaceutical ingredients imports.
“Recognizing the strength of the innovative biopharmaceutical sector in the United States, Commerce should use this investigation to identify where there are specific national security vulnerabilities (i.e., if the industry is over-reliant on supply for essential medicines and API from adversarial countries) and identify appropriate targeted solutions to address those concerns,” Taylor wrote.
When President Trump unveiled his “reciprocal” tariffs last month, pharmaceutical products were exempted along with other goods like copper and lumber articles.
Contrary to what Trump has claimed, Taylor wrote tariffs are not the key creating more domestic production of goods like pharmaceutical products. Roughly 90 percent of prescriptions in the U.S. are for generic drugs, with India and China being major sources of these medications or their active pharmaceutical ingredients.
“On the contrary, every dollar collected in tariffs would be a dollar less that innovative biopharmaceutical companies are able to invest in U.S. R&D, manufacturing facilities and infrastructure. Instead of imposing tariffs, therefore, the Administration should adopt pragmatic solutions and targeted incentives to ensure the United States’ continued security,” wrote Taylor.
In justifying his trade war, Trump has claimed the U.S. economy has been “looted, pillaged, raped, plundered” by global trade agreements.
But Taylor again pushed back on such assertions, writing, “Far from being weakened by international competition, the innovative biopharmaceutical industry has demonstrated a combination of growth, stability and economic resilience over many years, making the industry a key driver of the U.S. economy.”
