According to a notice published on 14 April in the federal register, the Department of Commerce has initiated an inquiry on how pharmaceutical imports affect national security.
The move is widely seen as a pioneer for the US, which has been tariffs on pharmaceuticals, which has been threatened by President Donald Trump for weeks.
Four more details:
- The Commerce Secretary launched an investigation on 1 April, “to determine the impact on the national security of pharmaceuticals and pharmaceutical ingredients and their derivative products.” The government is accepting public comments about the investigation to be submitted within 21 days.
- The investigation was started under Section 232 of the Trade Extension Act. Under the law, the Department of Commerce will need to submit results from investigation within 270 days, although the authorities within the administration have suggested that the investigation will end more rapidly, according to which Bloomberg,
- On 8 April, President Trump said that the drug import would soon face the “major tariff”, when the pharmaceuticals were excluded from the early stages of mutual tariffs. Pharmaceuticals are currently subject to a universal 10% tariff.
- President Trump has postponed tariffs as a way to promote domestic manufacturing and reduce the country’s dependence on foreign goods. While many pharmacy and supply chain experts welcome measures to strengthen domestic manufacturing, he warns that tariffs can cause extensive supply chain disruption, including lack of generic drug and increase in costs.
Prominent drug companies, including Novartis, have announced multi-unarmed dollars schemes to expand US-based manufacturing in recent weeks. Although it may take years to enhance American production, experts say.
