U.S. President Donald Trump has announced that starting October 1, a 100% tariff will be imposed on imported drugs unless pharmaceutical companies manufacture them in the United States. Industry analysts warn that this policy could disrupt the global drug market, trigger price fluctuations in other markets, and threaten patient access to essential medications, with cancer drugs expected to be most affected. The National Union of Pharmacists Associations has called on the government to support domestic pharmaceutical production and ease drug review timelines to help the industry navigate this challenge.

Jaw-Jou Kang, former director of Taiwan’s Food and Drug Administration, noted that Trump’s policy primarily aims to bring overseas manufacturing back to the U.S. and welcomes foreign plants in the U.S., but the result will be higher production costs. Without government funding support, this could lead to drug shortages or increased reimbursement restrictions, with patent-protected cancer drugs being the most vulnerable. Whether and when price hikes will occur remains to be seen.

Yin Wei-Ying, Chair of the Public Affairs Committee of the Taiwan Generic Drugs Association, said that Trump’s policy not only creates uncertainty for international pharmaceutical companies but may also drive price fluctuations in other markets through cost pass-through, threatening patient access. Tariff measures inevitably raise operational risks for global pharmaceutical companies and indirectly affect the stability of the global supply chain.

Huang Jin-Shun, Chair of the National Union of Pharmacists Associations, explained that while Trump expects pharmaceutical companies worldwide to manufacture in the U.S., building a plant is not just about erecting a facility. Establishing a plant requires navigating rigorous regulations and at least 4–5 years of preparation. Taiwanese companies considering U.S. manufacturing must carefully consider factors such as labor, unions, and environmental regulations, which pose significant investment hurdles.

Huang emphasized that in response to tariff shocks, the key challenge for the government is how to ensure the survival of domestic pharmaceutical and biotech industries. Taiwan’s small market makes competition with major international companies difficult. The government should quickly provide support and funding to improve the environment. Existing domestic drug review timelines are extremely slow and should be relaxed to help local industries stabilize and overcome this crisis.

Yin added that Taiwan should implement its own “generic drug policy,” using policy guidance, incentive measures, and price-volume agreements to gradually increase the domestic market share of locally produced generics and ensure supply resilience. The Generic Drug Association is currently drafting policy recommendations and hopes to work collaboratively with the government to navigate international changes and safeguard patient access to essential medications.

Resource: 藥品關稅風暴 癌藥恐首當其衝