U.S. pharmaceutical imports rise twofold amid tariff concern

Companies “Busy securing inventory amid tariff concerns”

U.S. pharmaceutical imports in the first quarter reach USD 108.2 billion... 97% increase year-on-year

"U.S. pharmaceutical companies secure local inventory ahead of expected pharmaceutical import tariffs”

U.S.

 

drug imports have nearly doubled in a year.

 

This is believed to be the result of frontline pharmaceutical and biotech companies focusing on securing inventory in expectation of U.S.

 

President Donald Trump's drug tariff imposition.

 

According to Korea Biotechnology Industry Organization (KoreaBIO) on the 12th, the U.S.

 

The United States Census Bureau and the U.S.

 

Bureau of Economic Analysis recently announced the results of U.S.

 

trade in goods and services.

 

According to the data, U.S.

 

imports of goods in the first quarter totaled USD 997.8 billion.

 

This is a 26.6% (USD 209.8 billion) increase from the USD 788 billion in the first quarter of last year.

 

In particular, imports of pharmaceuticals increased significantly.

 

In the first quarter, U.S.

 

imports of pharmaceuticals amounted to USD 108.2 billion, a 97.2% (or USD 53.3 billion) increase from the USD 54.9 billion in the same period last year.

 

Pharmaceutical imports surged in March during the first quarter.

 

This coincides with the spread of concerns over President Trump's pharmaceutical tariffs.

 

In fact, U.S.

 

pharmaceutical imports, which stood at USD 29.5 billion in February, rose to USD 50.4 billion in March, an increase of 70.9% in just one month.

 

Considering that total imports increased by 5.5% (from USD 326.5 billion to USD 344.3 billion) during the same period, the increase in pharmaceutical imports was particularly notable.

 

The share of pharmaceuticals in total U.S.

 

imports rose from 9.0% in February to 14.6% in March, an increase of 5.6 percentage points in a single month.

 

KoreaBIO explained that the increase in U.S.

 

pharmaceutical imports was due to the proactive response of local pharmaceutical and biotech companies to concerns over President Trump's import tariffs.

 

KoreaBIO analyzed that “local pharmaceutical and biotech companies appear to be focusing more on securing inventory in the U.S.

 

this year as a short-term response.” Domestic companies are also focusing on securing inventory in the U.S.

 

As of the 7th of this month, Celltrion has completed the transfer of approximately 15 months' worth of inventory for products scheduled for sale in the U.S.

 

Celltrion expects that this will minimize the impact of tariffs not only this year but also in the first half of next year.

 

Celltrion plans to minimize risk in the mid- to long-term by producing finished drug products (DP) through local contract manufacturing organizations (CMOs) in the US.

 

The company explained that it has completed negotiations to secure additional quantities in preparation for the possibility of increased tariff burdens after next year.

 

At the same time, it is pushing ahead with securing active pharmaceutical ingredient (API) manufacturing facilities in the US.

 

It has completed preliminary reviews and has entered the stage of detailed reviews.

 

A Celltrion official said, “We have been devising various strategies in advance to respond to the possibility of changes in President Trump's tariff policy,” adding, “Once the policy is finalized, we will promptly share a comprehensive response plan with our shareholders.” The U.S.

 

government plans to make a separate announcement on whether to impose tariffs on pharmaceuticals.

 

Although it was not included in the mutual tariffs announced on the 2nd of last month, expectations are growing that separate tariffs on specific items will be imposed in May.

 

Prior to this, the U.S.

 

Department of Commerce has been assessing the impact of imports of pharmaceuticals and pharmaceutical raw materials on national security under Section 232 of the Trade Expansion Act, and requested public comments from interested parties from the 16th of last month to the 7th of this month.

 

It is reported that a total of 957 companies and institutions worldwide, including the United States, submitted public comments.

 

South Korea also submitted comments through the government, KoreaBIO, and the Korea International Trade Association(KITA).

 

U.S.

 

companies and institutions, including the Pharmaceutical Research and Manufacturers' Association, are said to have submitted comments stating that “imposing tariffs on pharmaceuticals is not the answer.”