Swamp Notes Big Pharma’s big tariffs
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Jul 12, 2025 Hannah Kuchler, The FT's Global Pharmaceutical Editor, dives into the complicated relationship between Big Pharma and the Trump administration. Discussing the proposed 200% tariffs on foreign drugs, she notes surprise market reactions and looming challenges like the looming 'patent cliff.' Kuchler highlights how tariffs could reshape drug pricing and manufacturing in the U.S. She also examines how healthcare policies and regulatory changes impact the pharmaceutical landscape, underscoring the industry's need to adapt in a turbulent environment.
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Investors' Skepticism on Tariffs
- Investors largely ignored Trump's threat of 200% tariffs on pharmaceuticals, expecting him not to follow through.
- The complexity and lack of details led investors to wait before reacting to such announcements.
Trump’s Mixed Pharma Relations
- Trump's relationship with Pharma is complex, involving drug price reduction efforts and support for COVID vaccine development.
- He pushed for the Most Favoured Nation rule to peg US drug prices to lower-priced countries.
Limits of Bringing Pharma to US
- Bringing drug manufacturing back to the US won't lower prices due to intellectual property monopolies.
- It could improve national security by reducing dependence on foreign drug supplies, but may increase shortages in generic medicines.