Trade tariffs on Canadian pharmaceuticals expected to increase costs in the U.S. and strain drug supply chains
Up to $3 billion in pharmaceuticals currently used in the United States (U.S.) depend on Canadian manufacturing, according to new research findings from the University of Toronto. Applying 25 per cent trade tariffs to these pharmaceuticals could add $750 million in cost to the U.S. market and has the potential to significantly disrupt drug supply over the long term. The analysis, published today in JAMA, focused on drugs with final production in Canada, a subset of the overall $6.75 billion in pharmaceuticals exported from Canada to the U.S. This accounts for more than 400 different ready-for-use medications, of which 28 have no alternative supplier. “The proposed tariffs could affect a wide range of medications, from antibiotics to mental health treatments,” said Mina Tadrous, lead author and assistant professor, Leslie Dan Faculty of Pharmacy, University of Toronto. “Straining this supply chain could trigger drug shortages…

