New US tariffs threaten pharma with massive production costs

Energy dependence and currency pressures are driving costs up in APAC.

New US tariff measures, along with geopolitical tensions, are prompting pharmaceutical companies to rethink supply chains and production strategies, said GlobalData.

“A key driver is the US administration’s decision to impose tariffs on imported pharmaceuticals and their ingredients, upending decades of medicines trade orthodoxy,” the report said.

Dominic Tyer, Senior Editor at GlobalData, said that US priorities have been more closely calibrated around onshoring manufacturing, putting companies under greater pressure to align their production with policy expectations.

GlobalData noted that this will continue to drive increased US-based investment in manufacturing, building on the billions of dollars that major pharmaceutical companies have already committed to expanding domestic capacity.

The impact is widespread across regions, and in the Asia-Pacific, energy dependence and currency pressures are increasing production costs.