Pharmaceuticals Become A Battlefield In The Sino-US Trade War

2025-02-07 07:02:36

(MENAFN- Asia Times) Since Beijing and Washington imposed tariffs on each other's goods this month, Western media have been closely monitoring whether the trade war will hurt China's supply of medicines to the United States and result in drug price hikes.

After US President Donald trump imposed a 10% tariff on all Chinese goods on February 4, China announced that it will impose a 15% tariff on eight types of US energy products, including coal, liquified natural gas and coking coal. It also imposed a 10% tariff on 72 types of US goods, including agricultural machines, crude oil, large displacement cars and electric vehicles, from February 10.

Trump said he will speak to Chinese President Xi Jinping at the appropriate time as he is“in no rush.”

On February 4, the American Hospital Association wrote in a letter to Trump that the new US tariffs will affect the supply of drugs, including cancer and heart medicines and antibiotics like amoxicillin, from China, Reuters reported. The association said nearly 30% of raw ingredients used to make critical drugs come from China.

The Reuters report said four lobbyists and one pharmaceutical executive had urged the Trump administration to exempt essential drugs from new tariffs several weeks ago.

Karen Andersen, a Morningstar analyst, was quoted as saying in the report that although major drug makers source active ingredients from China, they tend to make their foundational blockbuster products in the US or Europe.

She said it would be more alarming for the world's biggest drug makers if the US imposed tariffs on Europe.

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