U.S. President Donald Trump’s proposed tariffs on pharmaceuticals are likely to cause shortages of dozens of Canadian-made drugs in the United States, according to a new study.
Pharmaceuticals are one of a handful of sector-specific tariffs the President has talked publicly about imposing, along with ones already levied on steel, aluminum and autos. Mr. Trump has suggested tariffs could address high drug costs in the U.S. and increase domestic manufacturing.
New research published Monday in the Journal of the American Medical Association looked at how many and what kind of Canadian-made drugs would be hit by the tariffs. It found US$3-billion in annual sales came from drugs with final production in Canada, which would lead to an increased cost of US$750-million for American buyers if tariffs were set at 25 per cent. Of the Canadian-made drugs, 79 per cent were generics.
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