The Latest on Tariffs and Their Potential Impact on Prescriptions 

Check any news source these days, and the hot topic is tariffs. They’re going up, they’re staying the same or being delayed—it seems like every day presents something different than the day before. The question for the pharmacy benefits industry is how these potential tariffs may impact plans and their members.  

The White House launched an investigation earlier this month to determine the effect of pharma imports on national security. This inquiry includes both generic and non-generic drugs and examines areas including: 

• Pharmaceutical demand in the U.S. 
• The role of foreign supply chains 
• The concentration of drug imports from a small number of producers  
• The potential for foreign countries to weaponize their control over pharma supplies 
• The ingredients used to make drugs 
• More than 70% of the active pharmaceutical ingredients used to make drugs in the U.S. are produced in other countries 

Prior to the conclusion of the investigation, the Trump administration can move forward with pharmaceutical tariffs by invoking the International Emergency Economics Power Act (IEEPA). Commerce Secretary Howard Lutnick stated that pharmaceutical tariffs would be coming in the next month or two. 

It remains unclear what tariffs will be levied and when. The impact of potentially higher drug costs and supply chain shortages on pharmacy benefits plans and their members is also uncertain. Our on-staff pharmacists are closely monitoring the situation and will be ready to help you navigate future changes.