Are Tariffs Taking Effect? South Korea Enters Top 10 as U.S. Monthly Pharmaceutical Imports Decline

U.S. Pharmaceutical Imports Drop 10% Year-on-Year in June
South Korea Enters Top 10 Exporters for the First Time

As U.S. pharmaceutical imports have sharply declined since the second quarter of this year, South Korea has entered the top 10 list of countries exporting pharmaceuticals to the United States for the first time ever. Despite the global trend toward protectionism and tariff barriers, Korean pharmaceutical and biotech companies are being recognized for achieving meaningful results.

According to data released on August 20 by the Korea Biotechnology Industry Organization, citing UN trade statistics, U.S. monthly pharmaceutical imports, which had been increasing through the first quarter, dropped sharply in the second quarter. In March, imports reached a record monthly high of $31.7 billion (approximately 44.2532 trillion won), but fell to $20.5 billion (about 28.618 trillion won) in April, $19 billion (about 26.5278 trillion won) in May, and $15.1 billion (about 21.0826 trillion won) in June. Compared to the same month last year, June imports were down by 10%. The United States is the world's largest importer of pharmaceuticals, with imports totaling $212.6 billion (about 296.8321 trillion won) last year, but the situation has changed this year.

Ireland, one of the United States' main pharmaceutical suppliers, was no exception. Although Ireland ranked first among U.S. pharmaceutical import sources last year, its monthly export volume has declined this year. In particular, U.S. imports from Ireland in June decreased by 4.9% compared to the previous year.

South Korea ranked 16th among U.S. import sources last year, but has steadily climbed the rankings this year. After ranking 13th in January, 14th in February, and dropping to 20th in March, South Korea held the 12th spot for two consecutive months in April and May, and finally broke into the top 10 in June. This demonstrates that the share of Korean pharmaceuticals in the U.S. market is expanding.

The Korea Biotechnology Industry Organization stated, "It is encouraging that Korean companies are maintaining their competitiveness at a time when major countries' exports to the U.S. are shrinking due to tariffs and strategic pharmaceutical stockpiling policies," adding, "Even in the face of tariff barriers, the strength of Korean companies is gradually coming to light."

The United States has recently been strengthening protectionist policies such as pharmaceutical tariffs and stockpiling orders. President Donald Trump has even stated that tariffs on pharmaceuticals could be imposed separately and increased by up to 250%. The stockpiling of key pharmaceutical ingredients is also being expanded.