You still may be seasick from checking your 401k after President Trump rolled out—and then suspended—his reciprocal tariff plan last week. It’s been a rough ride for anyone trying to anticipate where or how it will end up. President Trump this week indicated again that tariffs on pharmaceuticals will be coming, and the Department of Commerce announced a study on pharmaceuticals that most observers believe is a precursor to something more concrete.
NCPA supports the effort to bring pharmaceutical manufacturing back to the United States. Our experience during COVID reminded everyone how dangerous it is to rely on foreign suppliers, especially hostile countries, for critical medicines and medical supplies. However, we are also extremely concerned that tariffs on pharmaceuticals could trigger shortages in the near term and, just as dangerous, force independent pharmacies to absorb higher costs. In the coming weeks we'll be making that point crystal clear to the administration.
They must understand that independent pharmacies are the last link in the supply chain. The manufacturers certainly will pass on the tariffs. And it's as predictable as the tides that increased drug prices will be passed on to pharmacies. Unless the federal government ensures that PBM pharmacy reimbursements are increased to reflect higher costs, the ripple effect of tariffs could be fewer pharmacies, stranded patients, and inadequate pharmacy networks for Medicare and Medicaid.
In the president's recent executive order on drug prices, he called out PBMs directly, ordering various agencies to reconsider their role in the health care industry and rein in their anticompetitive practices. So, he and his team are clearly aware of their abuses. Our goal now is to make sure they see the potential for more abuses if their tariff policy isn't carefully written.
