Korean Pharmaceutical and Bio Companies Also on High Alert
U.S. President Donald Trump pressured global pharmaceutical company leaders, warning that tariffs would be imposed if they do not relocate their production bases to the United States.
According to Bloomberg News on the 21st (local time), President Trump held a private meeting with pharmaceutical companies at the White House the previous day. The meeting was attended by CEOs of global pharmaceutical companies such as Eli Lilly, Merck, and Pfizer. Trump reportedly demanded that they hasten the relocation of overseas production bases to the U.S., using tariffs as leverage.
On the 18th, Trump announced that he would impose a minimum 25% tariff on imported medicines but left room for negotiation by stating that if production facilities were relocated to the U.S., tariffs would not apply. On the 19th, he increased pressure by saying the timing of tariff imposition could be moved up from early April to within a month. Then, the next day, he met directly with representatives of global pharmaceutical companies and openly mentioned the relocation of production facilities, applying pressure once again.
Since exporting medicines produced in other countries to the U.S. cannot avoid tariff impacts, Korean pharmaceutical and bio companies are also on high alert. Some domestic companies engaged in overseas contract manufacturing are considering using local U.S. companies as a countermeasure.
Bloomberg reported that pharmaceutical companies sought relief measures for the drug pricing program introduced during President Joe Biden’s administration at this meeting, but they failed to secure any promises from President Trump. They tried to persuade Trump to ease legislation allowing the federal government to negotiate prices for certain medicines and to support policies regulating intermediaries, which the industry sees as a cause of rising drug prices, but they were unsuccessful.
Bloomberg also noted that although President Trump has a pro-business stance, his relationship with pharmaceutical companies was not good even during his first term, suggesting it may be difficult for the industry to get what it wants. On this day, Trump pointed out that the U.S. pays more for prescription drugs than other countries and said that Health and Human Services Secretary Robert Kennedy Jr. and others would seek ways to reduce drug prices. Trump has expressed the perception since his first administration that American citizens pay more for medicines than citizens of other countries.
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