ASHP sent letters to the White House and the acting heads of the Food and Drug Administration and the Centers for Medicare & Medicaid Services requesting tailored exemptions for active pharmaceutical ingredients (APIs), key starting materials, finished prescription drugs, and medical supplies for drug administration. Tariffs were recently imposed on goods imported from China, which exports a significant percentage of API and key starting materials, as well as finished prescription drugs and supplies, into the United States. A 30-day hold was announced on tariffs for Canada and Mexico, both of which also produce prescription drugs and medical supplies.
In the letter, ASHP noted its support for efforts to strengthen the medical supply chain through investment in domestic manufacturing but cautioned that using tariffs to accomplish this requires careful calibration to avoid unnecessary supply disruptions, including shortages. To protect patient access, ASHP asked the administration to convene healthcare stakeholders to identify the API, prescription medications, and supplies that should be considered for exemption. ASHP further encouraged the administration to consider other incentives to promote robust investment in domestic manufacturing for these products.
“Increasing domestic manufacturing of API, prescription drugs, and medical supplies is important for a strong medical supply chain,” said Tom Kraus, ASHP vice president of government relations. “Tariffs may encourage domestic manufacturing, but they also have the potential to increase drug prices and cause shortages of critical medications. They should be applied selectively and dovetail with other incentives to increase domestic production and promote a stable supply chain.”
ASHP will continue to monitor the impact of tariffs on the prescription drug supply and update members as more information becomes available.
