By: Sindhuja Ravichandran -- Analyst–Category Specialist, API &Biologics
01 January, 2017
North America, specifically the U.S.,imports around 80percent of raw materials, amajority of whichcomesfrom China. Theongoingtrade war between the two powerful economies will have a huge impact on many industries,including pharma. This article speaksofthe list of pharmaceutical goods under the purview of this trade war. Further, it also discusses thewar’simpact on the pharmaceutical industry.
A trade war has been ongoingbetween twoof the world’sbiggest economies—the U.S.and China. This hashadan impact on all possible trade transactions involving technology. It began with levy ofhigher tariffs on Chinese imports;in response, China blacklisted some of the U.S.companies. In May 2019, the Trump administration released acomprehensivelist of products (Lists3 and 4) facing a 10–25 percent increase inimport tariffs. On thislist aresome commodities used in the pharmaceutical industry. This article talks about the impact of increase in import tariffs onthepharmaceutical industry.
Lists3 and 4 include a few commodities that go into manufacturing pharmaceutical products(Attachment 1), for example, some chemicals used as binding agents for drugs or forpackaging products. Hence, the tariff change will not have a direct impact on the finished products. Thus, this impact will be relatively less on pharmaceutical and related industries. Nonetheless, there will be a limited impact owing to the rise in cost of products that have pharmaceutical as well asother industrial applications.
Join us on Feb 1; Rethinking Procurement Operating Model to Drive Stakeholder Success