100% Drug Tariffs Are A Dire Threat — And Patients Can't Wait

By Debbie Hart

Since the start of his second term, President Trump has shown a clear commitment to improving access to medicines for American patients. In late September 2025, his Administration reaffirmed this priority with the launch of a new direct-to-consumer prescription website — alongside the first in a series of anticipated deals with pharmaceutical manufacturers to align specific U.S. drug prices with those abroad.

But these efforts came on the heels of an unprecedented move: a threat to impose a 100% tariff on select prescription drugs, aimed at driving pharmaceutical manufacturing back to the U.S.

The contrast from the White House couldn’t be more stark. If enacted, tariffs of this scale could dramatically raise manufacturing costs, disrupt global supply chains, and stall critical R&D efforts. Most concerning of all, they threaten to limit access to life-saving medicines for the patients who need them most.

As President and CEO of BioNJ — New Jersey’s life sciences trade association — I am deeply alarmed by the potential ramifications of these tariffs. In addition to the impact on patients, with the Garden State being home to more than 5,600 life sciences organizations, the impact could be far-reaching and devastating for the full continuum of companies we represent.

To survive this existential threat, we cannot afford to sit idle. We must act now — working with federal and state policymakers to prevent the harmful consequences of these proposed tariffs. The focus must remain on smart, patient-centric solutions that preserve access, protect innovation, and ensure the continued strength of the U.S. biopharmaceutical industry.

Manufacturing Costs & Pricing Pressure: Immediate Impact On Patients And Profits

The math is simple — and alarming. A 100% tariff would effectively double the cost of imported drug ingredients, finished products, and critical components. Early 2025 estimates from the Yale Budget Lab show that even a 25% tariff could raise annual household medication costs by $600. At 100%, the impact on patient out-of-pocket costs — and industry pricing — would be exponentially worse

For companies operating in competitive therapeutic areas with tight margins, this isn't a minor budget shift. It’s a serious threat to business survival.

Bringing a single drug to market takes 10 to 15 years and costs an average of $1.3 billion. Even then, 9 out of 10 drugs entering phase one clinical trials fail. Companies invest heavily in the hope that one molecule will succeed, a process already rife with financial risk.

When tariffs double production costs, companies are left with an impossible choice:

• Absorb the costs and risk investor confidence, future R&D, and financial stability;
• Raise prices, which could limit access and lead to loss of coverage; or
• Split the difference and strain partnerships and performance across the supply chain.

No matter how a company chooses to handle these costs, the ripple effects are clear, and harmful. Higher manufacturing costs lead to higher list prices. That makes negotiations with insurers and pharmacy benefit managers (PBMs) more difficult, often resulting in restricted coverage. In turn, patients face higher out-of-pocket costs at the pharmacy, or worse, they go without needed medications. At a time when affordability is already a major challenge in the U.S. healthcare system, this added burden will hit the most vulnerable patients the hardest, both financially and medically.

Supply Chain Disruptions: A Future Marked By Drug Shortages, Delays, And Poor Health Outcomes 

American companies are the backbone of the global biopharmaceutical industry, contributing unmatched investment, talent, and scientific expertise across early-stage R&D, clinical trials, and advanced manufacturing. Between 2015 and 2020, U.S. companies filed nearly 38% of biotechnology patents worldwide. In 2021, 55% of global R&D investment came from companies headquartered in the U.S.

Yet this leadership is under growing threat. China and other global competitors are making massive investments to challenge America’s position in biopharmaceutical innovation. Last year, China surpassed the U.S. in the number of clinical trials conducted, a clear signal of shifting momentum. Even more concerning, China is no longer just mimicking U.S. breakthroughs; an increasing share of novel therapeutics are now originating there. This is no time for policies that risk further weakening America’s competitive edge. The potential consequences threaten patients and U.S. innovation in key ways:

• Reliable Access to the Global Supply Chain Remains Critical

Nearly 90% of U.S. biotech companies rely on imported supplies to develop FDA-approved therapies. Tariffs would inevitably drive up costs and make key materials prohibitively expensive. While the sector has already started to alter their supply chains and manufacturing relationships to be more domestic or housed in strategic allied nations, industry leaders report that this transition could take 12 to 24 months — disrupting R&D timelines, reducing access to treatment, and ultimately harming patients.

• Progress on Drug Shortages Could Be Undone

While drug shortages have eased since peaking in early 2024 and are now at their lowest level since 2022, more than 250 medications remain in active shortage. Disrupting the supply chain now risks reversing that progress and creating new, preventable shortages.

• Foreseeable Economic Consequences

These are not just statistics; these numbers directly impact the wellbeing of families, communities, and regional economies from coast to coast. Alongside patients, the nation's entire innovation economy — including research institutions, contract manufacturers, logistics partners, and the more than four million Americans whose jobs are supported by the biopharmaceutical industry — will bear the brunt of the consequences.

R&D Slowdowns & Capital Flight: Why Early-Stage Innovators Are Most At Risk

The U.S. life sciences industry spans from small biotech startups to global biopharmaceutical leaders, all driving innovation and investing heavily to bring new therapies to patients worldwide. Smaller companies have a key role in this ecosystem, often serving as the originators of breakthrough science. An increased reliance on that small company innovation by larger, more established firms is essential to sustaining progress. As of 2023, the U.S. was home to 85% of the world’s small, pre-profit biopharma firms, which collectively discovered 64% of new molecular entities, underscoring their critical contribution to medical innovation.

For investors evaluating early-stage companies, tariffs introduce yet another layer of risk to an already high-risk, high-reward sector. Smaller companies lack the substantial capital needed to swiftly relocate manufacturing to the U.S., leaving them especially exposed to supply chain disruptions. The likely result? Fewer clinical trials, delayed treatment development, and potentially, the shuttering of promising American programs altogether. Biotech startups in the U.S. already experience a 90% failure rate, and those that manage to stay afloat struggle with cyclical layoffs, even without the threat of tariffs.

Policy Path Forward: Protecting American Innovation & Patients

It’s clear that the Trump Administration is committed to improving access to medicines for American patients and strengthening the U.S. biopharmaceutical industry. BioNJ and other life sciences leaders share these goals. Imposing 100% tariffs on critical healthcare products, however, is not the solution. Further, while larger biopharma companies may be capable of negotiating deals with the administration as a function of their unique therapeutic portfolios, the thousands of small and emerging biotech companies who represent the nation’s engine of biomedical innovation are incapable of doing so.

If the Administration proceeds with any form of tariff on drug products, it must do so with caution, leveraging policy tools that strike a balance between preserving treatment access and promoting American innovation. To avoid immediate disruptions to access and supply chains, essential treatments and their components must be exempt from tariffs. In addition, there must be clear, expedited pathways for companies to apply for exemptions when needed. At the same time, policymakers should pursue meaningful investment incentives to support the reshoring of biopharmaceutical manufacturing and reinforce U.S. leadership in the global market.

The biopharmaceutical industry stands ready to partner with policymakers to advance shared goals: improving access to care, enhancing affordability, and securing America’s leadership in innovation.

Now is the time for leaders in Washington to act to protect patients, safeguard innovation, and strengthen our economy.

About The Author:

Debbie Hart is the President and CEO of BioNJ, the life sciences trade association for New Jersey.